Gold producers AngloGold Ashanti, Evander Gold Mines, Harmony Gold and Sibanye Gold have tabled revised wage offers to the Association of Mineworkers and Construction Union (AMCU), the National Union of Mineworkers (NUM), Solidarity and UASA for the period July 1, 2015, to June 30, 2018.

The producers said the revised offers would attract full benefits and would ensure that entry-level, underground employees receive guaranteed pay, including basic pay and allowances, as well as medical and retirement contributions, of between R13 728 and R14 611 a month in the third year of the agreement.

This represented total increases for entry-level, underground employees of between R2 869 and R3 552 over the duration of the agreement.

“As we have indicated throughout the negotiations, our focus is on achieving an agreement that will ensure the sustainability of the industry and jobs as far as possible,” said Chamber of Mines (CoM) chief negotiator Dr Elize Strydom, on behalf of the gold producers.

She added that the offers made by the gold companies were “generous” and significantly above inflation and higher than any increases offered or agreed on in any other industry this year.

“We are focused on making a real difference to the lives of employees,” she stressed.

WAGE OFFERS AND BENEFITS
In line with the companies’ differing economic circumstances, offers in respect of wages had been differentiated accordingly.

AngloGold Ashanti has offered category 4 to 8 employees and B-lower officials increases of R750 a month in year one, R775 a month in year two and R800 a month in year three.

Evander has offered category 4 to category 8 employees and B-lower officials increases of R650 a month in year one, R675 a month in year two and R725 a month in year three.

Harmony has offered category 4 to category 8 employees and B-lower officials increases of R600 a month in years one, two and three.

Sibanye Gold has offered category 4 to category 8 employees and B-lower officials increases of R675 a month in year one, R700 a month in year two and R725 a month in year three.

The producers also offered a R100 a month increase in the living-out allowance in year one for category 4 to category 8 employees and B-lower officials.

AngloGold, Evander and Sibanye offered miners, artisans and officials an increase of 6% on the standard rate of pay in year one, and 6% or Consumer Price Index in years two and three.

Harmony offered miners, artisans and officials increases of 6% on the standard rate of pay in years one, two and three.

Moreover, the companies noted that additional nonwage offers previously made in response to union demands, remained in place.

These included an increase in the medical incapacity benefit from R40 000 to R55 000 over three years, the extension of the 2011 to 2013 concession of the medical aid contribution rates to 60% for employers and 40% for category 4 to category 8 employees for three years from the date of the wage agreement and an increase in the current guaranteed minimum severance pay from R20 000 to R30 000 over three years.

Additionally, companies offered an extension of retirement age to 63 years for surface workers as from July 1, 2015, subject to meeting company medical examinations and fitness-to-work assessments as required. However, employees who wish to retire at 63 or before 63 would be entitled to do so.

The companies also proposed that a task team be established to investigate the extension of the retirement age for underground employees from 60 to 63 years of age. The task team must complete a written report on its findings and recommendations within six months.

“As the producers, we cannot ensure the sustainability of our industry on our own. We urge all parties to consider the situation the industry currently finds itself in and the long-term consequences of unrealistic wage increases. We further urge the unions and our employees to seriously consider this offer,” Strydom concluded.