JOHANNESBURG (miningweekly.com) – Gold producer Sibanye Gold has inked a three-year wage deal with labour unions, the National Union of Mineworkers (NUM), Solidarity and Uasa, which will see entry-level workers receiving increases of between 10% and 13% in basic wage in each of the three years of the agreement.

This followed the conclusion of similar three-year wage deals between gold sector unions and gold producers AngloGold Ashanti, Evander Gold Mines and Harmony Gold earlier this month.

Rival union, the Association of Mineworkers and Construction Union (AMCU), however, remained conspicuously absent from the most recent deal, which was concluded under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA) and covered the period July 1, 2015, to June 30, 2018.

Mining Weekly Online reported in July that a verification audit showed that the NUM had 44% representation at Sibanye, while AMCU’s members accounted for 38% of its workforce.

Speaking on behalf of the gold producer, Chamber of Mines chief negotiator Dr Elize Strydom noted that, while Sibanye had sought to include all unions in the deal, an agreement on wages between all the parties remained elusive.

“Throughout the process, Sibanye has made every effort to engage meaningfully with all parties, including AMCU and, indeed, extended the negotiations period in an effort to reach a mutually beneficial agreement.

“After further extensive engagement under the auspices of, and facilitated by the CCMA, it became clear that this was not possible. While it is unfortunate that all the parties could not agree, we are pleased that an agreement has been reached with the NUM, Uasa and Solidarity,” she commented.

The deal will see Category 4 to 8 employees and B-lower officials receiving an increase of R675 a month in year one, R700 a  month in year two and R725 a month in year three, as well as a R100 a month increase in the living-out allowance in year one. 

This represented an increase of 12% in year one, 11% in year two and 10% in year three.

Miners, artisans and officials would receive an increase of 6% on the standard rate of pay in year one, and 6% or a consumer price index-linked increase – whichever was the greater – in years two and three.

In addition to the wage increase, Sibanye had agreed to increase the medical incapacity benefit from R40 000 to R55 000 over three years, while retaining the medical aid contribution at 60% for employers and 40% for Category 4 to 8 employees for three years from the date of agreement.

The current guaranteed minimum severance pay would also be lifted from R20 000 to R30 000 over three years, while the retirement age for surface workers had been extended to 63 years, subject to meeting company medical examinations and fitness-to-work assessments.

The gold company had also agreed to establish a task team to investigate the extension of retirement age for underground employees from 60 to 63 years. The task team would complete a written report on its findings and recommendations within six months.

The deal would also see increases in the funeral cover for certain employment categories and contained an agreement that the parties would engage over a three-year period on the issue of securing the sustainability of the sector and operational efficiency.

“The wage settlements reached between the relevant companies and unions are all substantial. Put differently, entry-level employees will receive an increase of between R25 000 and R30 000 over the three-year period,” concluded Strydom.