The Chamber of Mines (CoM) is approaching the gold wage negotiations with a positive and constructive attitude, senior executive of employment relations Dr Elize Strydom tells Mining Weekly, adding that the prenegotiation workshop, held on July 8, was productive and constructive.

The gold wage negotiations, which are currently under way, have caused concern among some analysts. Some unions have demanded increases of above 100%, which is regarded by some analysts as unachievable and will lead to mining companies retrenching workers or shutting their doors.

Some analysts have stated that the inexpe- rience of the Association of Mineworkers and Construction Union (AMCU) regarding wage negotiations and its ongoing competition with the National Union of Mineworkers (NUM) for a bigger share of unionised employees will only deter a productive outcome to the gold wage negotiations ahead.

“It is often forgotten that AMCU has a long and established record of negotiations in the coal and platinum industries. While it is new to centralised bargaining in the gold industry, the processes and procedures are all the same,” notes Strydom, however.

The gold wage negotiations usually take about two months, but, amid uncertainty within the industry this year and the three-year low the gold price reached in June, many have suggested that the negotiations will continue for months before a settlement is reached.

Although Strydom confirms that, histori- cally, negotiations have taken about two months, she adds: “All things being equal, we expect that this year will not be different.”

The prenegotiation workshop was directed at developing a negotiation protocol that stipulates the rules and procedures of the negotiations and discussing the economic circumstances of employers and employees in the industry.

During this volatile period for gold, unions are demanding higher wages and more benefits. “Clearly, it is important that we reach a settlement that goes some way towards achieving the aims of the unions, while ensuring the sustainability of the industry going forward. By its very nature, wage negotiations will have differential starting points – it is about achieving a mutually acceptable outcome,” says Strydom.
She states that people should be aware that the gold industry is in crisis.
“It has served the country for 100 years and can do so for many decades more. But, we need to nurture it,” she concludes.