Diversified miner Sibanye-Stillwater has reached an agreement with labour union the Association of Mineworkers and Construction Union (AMCU) in respect of annual wages and benefits for employees at the Marikana and Rustenburg operations.

The agreement with AMCU follows previous agreements reached with labour unions the National Union of Mineworkers and UASA on September 30 and marks the conclusion of the wage negotiation processes at the Marikana and Rustenburg operations.

The final agreement is consistent with the previous five-year, inflation-linked offer, with the first three years comprising fixed, average, yearly wage increases of 6% and above for bargaining unit employees, but with increases for years four and five fixed at R1 300, or 6%, in year four and R1 400, or 6%, in year five, compared with the previous offer’s consumer price inflation-linked variable increases.

Miners and artisans will receive average yearly wage increases of 6% a year for each of the five years. The increases in other benefits remain the same as the previous offer. The final agreement will be extended to all unionised and non-unionised employees at these operations.

“We are pleased to have concluded these wage negotiations timeously and expediently, without disruption or the need for third-party intervention. The annual wage and benefit increases that have been agreed are in line with inflation and secure a five-year period of stability at the Rustenburg and Marikana operations, which will be beneficial for all stakeholders,” says Sibanye CEO Neal Froneman.

“The agreement reached with AMCU and other representative organised labour unions is consistent with the recent wage increases concluded at our South African gold operations, which was a precursor to these negotiations, with a total estimated average increase in the wage bill, including all benefits, over the five-year period of approximately 6.3% a year,” he notes.