JOHANNESBURG (miningweekly.com) – Chamber of Mines (CoM) chief negotiator Dr Elize Strydom has rubbished reports claiming that the dispute declaration by three trade unions participating in collective wage bargaining with gold producers was a precursor to extensive strike action in the sector.

“Talk of strike action is premature, and points both to ignorance of the negotiation process and of the recent history of wage negotiations in the gold sector,” she said in a statement.

Strydom added that dispute declaration was “entirely normal” in wage negotiation processes, and had been a feature of gold sector wage negotiations for 20 years.

“Dispute declaration signals the start of a very structured, orderly mediation process under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), as both dispute declaration and mediation are legal provisions that demonstrate the ongoing commitment of these parties to the process and the rule of law,” she commented.

The National Union of Mineworkers (NUM), Uasa and Solidarity earlier this week declared the dispute during negotiations at the CoM, despite the chamber improving its initial wage offer from 4% to 5% for both wages and accommodation-related allowances.

After rejecting the offer, Solidarity general secretary Gideon du Plessis said that negotiations in the gold industry would only gain momentum if a process of “facilitation” was followed.

Following the referral of the dispute to the CCMA, the commission on Friday confirmed that mediation between the unions and the CoM – which represented gold producers AngloGold Ashanti, Evander gold mine, Gold Fields, Harmony Gold, Rand Uranium, Sibanye Gold and Village Main Reef – would begin on August 1, and be overseen by CCMA national senior commissioner Afzul Soobedaar and Peter Harris.

Strydom said that the gold companies party to the wage negotiations were “very encouraged” by the move to mediation.

“We remain confident of a positive outcome for all parties, but are disappointed that some observers and commentators are predicting its failure and, indeed, the inevitability of strike action,” she said.

In response to reports on the wage deadlock, Labour Minister Mildred Oliphant on Friday called on parties to approach the mediation process with intent to resolve the dispute as soon as possible.

“I want to appeal to all employers and employee representatives who are involved in wage negotiations to do so in good faith. If there is a deadlock, give the facilitation a chance. There is absolutely no reason why the different parties cannot find the middle ground. Let the strike be the last resort,” she said.