JOHANNESBURG (miningweekly.com) – South Africa’s Chamber of Mines (CoM) on Monday confirmed the reciept of proposals by the the National Union of Mineworkers (NUM) regarding the revision of wages and conditions of employment of gold mining companies represented by the Chamber.

Newswire Reuters reported that NUM indicated that it would seek an entry-level minimum monthly wage of R7 000 for surface workers and R8 000 for underground workers in the gold mining industry.

The demand equates to a 49% increase for surface workers, who currently earn an entry-level wage of R4 700 and a 60% hike on the R5 000 underground worker wage.

CoM spokesperson Charmane Russell told Mining Weekly Online that the current minimums was for basic salaries, excluding benefits and allowances.

Reuters also reported that NUM would seek a 15% wage hike for "all other wage categories".

The CoM is representing AngloGold Ashanti, Gold Fields, Harmony, Sibanye Gold, Village Main Reef, Pan African Resources and Rand Uranium in the gold mining industry wage negotiations, which Russell said would get under way in early to mid-June.

Based on records at the end of March, the NUM represented about 65.5% of employees within the relevant bargaining categories at the member mines.

The Association of Mineworkers and Construction Union, which has poached thousands of members from the once-dominant NUM, has not yet submitted its wage proposal.

CoM industrial relations adviser Dr Elize Strydom, who leads the gold producers’ negotiating team and who last month warned that this year’s negotiations would be particularly tough, noted that the CoM and the unions would seek to reach common ground during a particularly challenging period within the gold industry.

Strydom also noted that the companies would engage the unions to agreeing a protocol that would guide conduct by all parties during the wage negotiation period. The draft protocol stated that all parties would seek to achieve an early settlement that is fair for employees, the unions and the companies, and avoid a protracted negotiating process.

“We appeal to all parties to explore every option in trying to reach settlement without resorting to damaging industrial action, and to reach agreements that will strike a balance between what is affordable to the companies and meets the expectations of the employees. The future of the gold industry is in our collective hands – it is our responsibility to ensure its safety and sustainability,” she urged.

Gold Fields CEO Nick Holland recently warned that South Africa’s mining industry was doomed if “crazy” wage increases continued to be paid and productivity declined.

He warned that companies would have to emulate the retrenchments that Anglo American Platinum (Amplats) announced in early May, if unions succeeded in bashing companies into paying productivity-bereft double-digit increases.

Amplats plans to cut 6 000 jobs, consolidate its Rustenburg operations into three operating mines and divest its loss-making Union mine.

Last year, the CoM agreed an addendum to the gold sector’s 2011 to 2013 wage agreement, following a wildcat strike.