Labour unions on Tuesday signed a two-year wage negotiation with the Chamber of Mines (CoM) for the coal sector, while the parties have also agreed to sign a two-year wage deal for the gold sector later in the day.

The agreement comes after two months of negotiations, in which some of the unions had threatened to go on strike in the gold sector if their wage demands were not met.

With regard to the coal negotiations, Anglo Coal, Xstrata, Exxaro, Delmas Coal and Kangra have offered a 9% wage increase for miners, artisans and officials for the first year of the wage agreement, while other employees, excluding entry-level miners, would receive a 10% increase.

Salaries for entry-level employees would be increased by 11%, while the living out allowance paid to employees would be increased by the same percentage as the salary increase, the CoM reported.

The Optimum and Siyanda collieries did not have different categories of employees and have offered all employees a 9,5% wage increase for the first year of the agreement.

Further, the salaries of all employees on coal-mines would improve by the average consumer price index plus 1%, with a guaranteed increase of 7,5%, for the second year of the agreement.

“I am very pleased with the outcome of the negotiations, and both employers and unions had approached the negotiations in a constructive manner,” the CoM’s Dr Frans Barker, who negotiated on behalf of the coal-mining companies, said.

He highlighted that this was the first time that the coal wage negotiations had been concluded without being referred to the Council for Conciliation, Mediation and Arbitration (CCMA).

Meanwhile, the labour unions had also signed a two-year wage agreement with gold-mining companies.

Following weeks of negotiations at the CCMA and threats of a looming strike in the sector, the gold companies and unions finally agreed on a 10,5% increase in the salaries of entry-level employees and 10% for the other lower category employees. Salaries for Miners and Artisans and Officials would increase by 9%.

Employers also offered a consumer price index (CPI), plus a 1% increase for employees for the second year of the wage agreement. A protection clause stipulating a minimum increase of 7,5% is also built into the offer, which means that employees will be assured of an increase of not less than 7,5% for the second year of the agreement.

“I am pleased with the outcome of the negotiations.  In this regard, I would like to thank the union leadership for the professionalism in which these negotiations took place, particularly as this was during a period of difficult operational environment for the gold mining sector”, said Dr Elize Strydom, who negotiated on behalf of the gold mining companies.

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