Zondereinde wage negotiations to continue this week
JOHANNESBURG (miningweekly.com) – Wage negotiations between the management of JSE-listed Northam Platinum’s Zondereinde mine, in Limpopo, and the National Union of Mineworkers (NUM), would continue this week under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), the platinum miner said on Monday.
The NUM had applied for a certificate of nonresolution, which was issued by the CCMA; however, the CCMA also recommended that the parties engage in further talks, which were set to take place on Tuesday and Wednesday.
Zondereinde GM Danny Gonsalves noted that, given the mine’s narrow cash operating margin after sustaining capital, he was encouraged by the agreement between the parties to continue discussions.
Northam had offered a two-year settlement incorporating increases ranging from 6% to 7.5% for the first year, and between 5.5% and 7%, or consumer price index + 1%, whichever was higher, for the second year.
“These distinctions are in line with the NUM demands that core employees be remunerated at a higher level than noncore employees,” the company stated.
However, the union rejected this offer, demanding, besides others, an increase of R2 000 on the basic wages of noncore employees, which was equivalent to an increase of between 22% and 40% at the lowest levels, and an increase of R2 100 on the basic wages of noncore employees, which was equivalent to a 23% to 43% increase.
Further, the union also demanded that the living-out allowance be increased by 69% from R2 200 to R3 718 a month and that the wage deal should only be valid for one year.
Combined, the NUM demands amounted to an average increase of 61%, Northam said.
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