JOHANNESBURG (miningweekly.com) – Trade unions, the National Union of Mineworkers (NUM), Solidarity and Uasa, on Monday accepted and signed a final two-year wage offer tabled by South African coal producers, following two months of wage negotiations under the auspices of the Chamber of Mines (CoM).   

Employers included in the agreement are Anglo American Thermal Coal, Exxaro Coal, Umsobo Coal, Kangara Coal, Delmas Coal, and GlencoreXstrata’s Optimum, Koornfontein and Glencore Coal South Africa operations.

“There has been constructive and courteous engagement by all parties throughout this period, a sense of trust and mutual benefit had underpinned these negotiations and we hope this ethos will prevail as we work at getting South African mining back to optimal production levels,” CoM chief negotiator for coal Motsamai Motlhamme commented.

According to the agreement, Anglo American Thermal Coal and Exxaro Coal Mpumalanga would increase basic salaries or remuneration packages of category 4 and 5 employees by 9.5% this year, while category 6, 7 and 8 employees as well as miners artisans and officials would get an 8.5% increase.

All employees at GlencoreXstrata’s Koornfontein and Optimum operations would receive a 7.5% increase.

Meanwhile, category 4 and 5 workers at Delmas Coal would get a 9% increase, while category 6, 7 and 8 employees would get an 8% increase and miners, artisans and officials would get a 7% pay rise.

Salaries of category 4 employees at Kangara Coal would rise by 9.2% this year to achieve the roll-up of category 4 to category 5, while categories 5, 6, 7 and 8, as well as miners, artisans and officials would get an 8% increase.

The agreement stated that Msobo Coal would grant increases of 8.5% for category 4 and 5 employees, and 8% increases for categories 6, 7 and 8 workers, miners, artisans and officials.

Glencore Coal South Africa would increase its category 4 employees’ salaries by 11%, its category 5 workers’ salaries by 9%, and that of category 6, 7, and 8 employees, including miners, artisans and officials by 8%.

In 2014, the basic salaries or, where applicable, remuneration packages, at all companies with the exception of Msobo Coal, Koornfontein and Optimum, would be increased by consumer price index (CPI) + 1%, with a guaranteed minimum of 8%, the CoM stated.

Salaries at Msobo Coal would be increased by CPI + 1%, with a guaranteed minimum of 8.5%, while salaries at Koornfontein and Optimum would be increased by CPI + 1% with a guaranteed minimum of 7.5% next year.