The National Union of Metalworkers of South Africa (Numsa) has reached a deadlock in its wage negotiations with diversified miner South32, which has manganese mining and aluminium smelting operations in South Africa.

The parties met for negotiations last week under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA), but could not reach an agreement.

Another meeting with the CCMA has been scheduled for September 15 and 16 to try and settle the dispute.

South32 is sticking to its offer of a 3.1% increase across the board, as well as a one-off increase of 4% only for one month. However, Numsa rejects the offer and says it is not a meaningful increase.

Additionally, the union says it is unfair that South32 already offered and implemented a 6.5% increase across the board for white collar workers, who already earn more than ordinary blue collar workers.

Numsa maintains that South32 can afford a reasonable wage increase for lower-level workers and says it will approach the Metals and Engineering Industries Bargaining Council for a certificate to strike, should the employer fail to put a better offer on the table during the next meetings.

In turn, South32 tells Mining Weekly it is committed to engaging with all the relevant parties during the wage negotiation process.

For more context, South32 explains that Numsa put forward a 15% one-year agreement and, in response, the management of South32 presented a revised offer taking into consideration the sustainability of the business.

The revised offer provides for a hybrid model for operators and artisans, while a consumer price inflation-aligned increase has been offered for production technicians.

“We are confident that with constructive and transparent discussions, an amicable resolution will be achieved. The wellbeing of our employees remains a top priority,” the company states.