Village Main Reef has concluded a wage agreement with the National Union of Mineworkers (NUM), Solidarity and Uasa in respect of wages and conditions of service for the period from July 1, 2018, to June 30, 2021.

The Association of Mineworkers and Construction Union (AMCU) is still considering the offer.

The three-year agreement, which was concluded under the auspices of the Minerals Council South Africa (MCSA), allows for increases to the basic wage of Category 4 to 8 employees of R575 in each of the next three years.

Miners, artisans and officials will receive increases of 4.25% in the first year of the agreement, and increases equal to the consumer price index in each of the following two years.

For underground entry-level employees, a 7% increase has been agreed for the first year.

In addition to the basic wages, the parties agreed to an increase in the living-out allowance for Kopanang employees amounting to R100 from September, and a further R50 increase in each of the two subsequent years, taking the total to R2 300.

Those at Village’s Tau Lekoa mine already receive that amount.

Further, the parties agreed to incremental increases in the minimum severance payment to R36 000 over the three-year period by increasing the current benefit by R2 000 a year.

Additionally, parties also agreed to incremental increases in the current minimum medical incapacity benefit of R55 000 to R60 000 over the three-year period by increasing the benefit by R1 500, R 1 500 and R 2 000 over the next three years, respectively.

Extension of the medical contribution concession for category 4 to 8 employees who choose to join a company recognised medical scheme to 60% for the employer and 40% for employees for the duration of the agreement was also agreed.

Further, the company will provide female employees four months paid maternity leave, with the option of spreading the four months paid maternity leave over a period of six months.

MCSA chief negotiator Motsamai Motlhamme welcomed this latest agreement in the gold mining sector as “further step towards a comprehensive set of agreements”.

While AngloGold Ashanti and Harmony Gold have already reached agreements with the various unions, Sibanye-Stillwater and the unions are still in talks under the auspices of the Commission for Conciliation, Mediation and Arbitration.