JOHANNESBURG (miningweekly.com) – As the Chamber of Mines (CoM) tabled its opening wage offer of 5.6% on Monday, trade union Solidarity noted that the negotiations for workers in the coal sector seemed to have kicked off positively.

Solidarity general secretary Gideon du Plessis said that while the opening offer was below demands and there were still “burning issues” such as housing, travel and living out allowance to navigate, the meeting was encouraging.

The CoM's 5.6% increase also applied to housing and living-out allowance, but Solidarity was demanding a 10% wage hike, as well as the levelling of disparities in the housing and living out allowances across the sector.

Du Plessis explained that living out allowances, for example, spanned from R3 300, to R5 600 depending on the company, and this should be evened out in addition to an increase.

The National Union of Mineworkers (NUM), Uasa and the CoM could not be reached for comment.

In good faith, Du Plessis said, the coal companies had made salary adjustments earlier this year to prevent the unrest seen in the embattled gold sector, which was also currently undertaking its own discussion around wage adjustments.

Negotiations between gold producers, represented by the CoM, NUM, the Association of Mineworkers and Construction Union (AMCU), Solidarity and Uasa, started last week, with the chamber offering a 4% hike, which was widely rejected.

The NUM demanded wage increases ranging from 15% to 60% in the gold sector, while AMCU wants companies to double salaries. Solidarity proposed a gold wage increase of 14% and increases in various other benefits, which it reduced to 10% on news of the employers’ first offer, and Uasa suggested a wage increase of 18%.

Du Plessis said that all parties had committed to fast-track negotiations in the coal industry and aimed to conclude them by August 12.

“… today’s opening offer, which was slightly higher than the one in the gold industry, shows that they are eager to reach a negotiated settlement,” he added, noting that certain, albeit smaller, demands were met, indicating a willingness on the side of all parties to conclude the talks successfully and peacefully.

Two years ago, strikes erupted in the coal sector after the parties had reached a deadlock; however, Du Plessis said that the industry was currently in a better financial position and had developed a good relationship with labour since then.

The parties would convene their next wage discussions on August 2.