JSE-listed Pan African Resources announced that its Barberton Mines operation has successfully concluded a three-year wage agreement with the National Union of Mineworkers (NUM) and a five-year wage agreement with Uasa.
NUM and Uasa represent the majority of employees at Barberton Mines.
The NUM agreement provides for an average yearly wage increase of about 5.6%, compound yearly, for the bargaining unit over a three-year term, effective from July 1 and terminating on June 30, 2024.
The Uasa agreement is effective from July 21 and terminates on June 30, 2026.
It provides for an average yearly increase of 5% for years one and two; an average yearly increase of 5% or the yearly South African consumer price inflation rate (CPI), whichever is higher, capped at 6%, for year three; and an average yearly increase of 5% or CPI, whichever is higher, capped at 6%, for years four and five.
The parties have, however, agreed to renegotiate these increases in the event of CPI being lower than 4% or higher than 7.5%, for years four and five.
Assuming a CPI rate of 5% for the initial three-year period, the above mentioned wage increases will result in an average yearly increase of about 5.4%, compound yearly, for these bargaining units over the period.