JSE- and NYSE-listed Sibanye-Stillwater has, in an effort to reach common ground with unions, tabled an amended conditional three-year settlement offer that takes into account that the cost of living has increased and is above the average inflation rate of 3.6% over the past year but also considers the sustainability of the company's South African gold operations.

The offer was tabled on November 18 during the ongoing conciliation process between the company and labour unions under the auspices of the Commission for Conciliation, Mediation and Arbitration.

The conditional settlement offer was made on the basis that it is accepted by the coalition which comprises all unions and would mean that:

*Category 4 to 8 employees would receive an increase of R570 in year one, R640 in year two and R670 in year three, which includes a R40 increase in the living-out allowance each year.

*Miners, artisans and officials would receive an increase of 4.5% in year one, 4.9% in year two and 4.9% in year three.

The company also made proposals on other non-wage and process issues.

The conditional settlement offer will increase Sibanye's wage bill at its gold operations by R1.4-billion by July 1, 2023 and excludes concessions made in respect of non-wage demands.

In rand terms, this offer would mean that, over the next three years, the average guaranteed income for entry-level category 4 underground production employees, who make up 29% of the total workforce, would increase to R16 730 in year one, R17 510 in year two and R18 326 in year three.

This excludes employee earnings through performance bonuses that make up a significant proportion of employee remuneration.

“We have stabilised and significantly extended the lives of the old Gold Fields mining operations since we acquired them in 2013. After five years of solid operations, our gold operations suffered severe disruptions in 2018 during the five-month strike which ended in April 2019, and most recently due to Covid. Our gold operations have only recently stabilised and returned to normalised and planned operating levels.

“At the same time, we have had to manage significant cost pressures. Over the past eight years, electricity tariffs have increased by 132% - that is, 79% above inflation – while total guaranteed income for entry-level underground employees has more than doubled. In making the conditional offer, we have carefully considered what our gold operations can afford. Above-inflation wage increases or any operational disruptions will jeopardise the sustainability of our gold operations and will negatively impact the many stakeholders that depend on them," Sibanye South African gold operations executive VP Richard Cox said.

The labour unions would now be given time to consider the offer.

The parties plan to meet again on November 24.