JOHANNESBURG (miningweekly.com) – Gold producers Pan African Resources and Village Main Reef on Wednesday reached a settlement agreement with the National Union of Mineworkers (NUM) and Uasa in respect of their Evander and Tau Lekoa mines.

The settlements reached, under the auspices of the Chamber of Mines (CoM) comprised an 8% increase in basic wages for category 4 and 5 employees, including rock-drill operators; and a 7.5% increase in basic wages for category 6 to 8 employees, which includes miners, artisans and officials.

Pan African announced to its shareholders that the new wage agreement would apply to the financial years ending June 2014 and June 2015.

Meanwhile, Village Main Reef said it was encouraged by the reaching of the settlement, which would enable the preservation of the mine in the best interests of all stakeholders.

CoM chief negotiator Dr Elize Strydom commented that the producers were particularly encouraged by the settlements reached between the unions and these two companies.

“That the producers and the unions can find one another in the interests of preserving these operations indicates our mutual desire to achieve an affordable and sustainable settlement,” she said.

Meanwhile, Pan African indicated that negotiations with the NUM and Uasa at its Baberton mines, which did not form part of the CoM’s negotiation process, were ongoing.

Further, Harmony Gold announced on Wednesday afternoon that most of its operations, besides Kusasalethu, have been severely affected by the NUM members’ strike. The union represented about 70% of Harmony’s overall workforce.

Harmony said the strike was peaceful and that all essential services personnel were at work.

“We continue to engage with all the unions to reach a wage settlement and to curtail the strike. We are encouraged by the responsible and peaceful conduct of employees engaged in the strike and urge all parties to uphold the law and all agreements,” CEO Graham Briggs said.