Gold producers and trade unions involved in wage negotiations in the gold mining sector remain far apart, the Chamber of Mines said on Thursday.
“The Economic and Social Sustainability Agreement is critical to the long-term sustainability of the industry and its ability to preserve jobs,” said Dr Elize Strydom, for the Chamber
“We encourage the unions to engage with their members on the details contained within our proposal.”
Gold wage negotiations between AngloGold Ashanti, Evander Gold Mines, Harmony, Sibanye Gold and Village Main Reef and trade union, the National Union of Mineworkers (NUM), Solidarity and Uasa continued on Thursday. In addition, discussions with the Association of Mineworkers and Construction Union (Amcu) were also undertaken.
“Notwithstanding revised demands by the NUM, Uasa and Solidarity yesterday [Wednesday], and revisions to the Chamber’s offer that were tabled today [Thursday], the parties remain far apart,” said Strydom.
The Chamber tabled a number of revisions to its offer on Thursday.
It out forward a revised offer of R30 000 as the minimum amount an employee may be entitled to in the event of retrenchment, up from R20 000.
An increase in medical incapacity benefits from R40 000 to R55 000 was also proposed, as well as an agreement that the retirement age for all surface workers would be 63 years was also put forward.
“The chamber believes that the unions’ demand for an increase to the retirement age to 63 years for miners, underground artisans and officials requires greater discussion by the parties for all the possible issues related to this could be properly understood including occupational health issues, issues pertaining to retirement funds and productivity, as well as Rand Mutual and ODMWA funding.”
The chamber proposed a task team be created to investigate the matter.
“We have revised those offers that we have been able to do, but we cannot increase our current wage and gain-share offers without affecting the sustainability of the sector and threatening jobs,” Strydom said.
The basic wage increase offers range between 7.8 percent to 13 percent for category 4 to 8 employees, and between 4.5 percent and six percent for miners, artisans and officials.
The companies developed these wage offers a few weeks ago based on a gold price of $1 200 per ounce. Thursday’s gold price was $1 144 per ounce.
“The parties are aware of the severe economic headwinds our industry is facing, including a dollar gold price which has steadily declined in recent years,” Strydom said.
“We have the joint responsibility of doing what is in the best interest of our industry, employees and members. We believe all parties can ultimately conclude an agreement that would be beneficial to us all, underpinned by sustainability and job security.”
ANA