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The Chamber of Mines says wage negotiations between gold producers and the National Union of Mineworkers (NUM) will resume on Monday.
Last week AngloGold Ashanti, Evander Gold Mines, Harmony, Sibanye Gold and Village Main Reef met with Solidarity and the United Association of SA (UASA) on their specific demands.
“We welcome the constructive feedback we have had from all the unions thus far and look forward to engaging with the NUM on Monday,” said chamber negotiator Dr Elize Strydom.
Strydom said the offers made to unions three weeks ago were determined by the companies’ economic models at a time when the gold price was $1,200 an ounce.
The gold price has subsequently declined by nearly $100 an ounce to about $1,100 – the lowest in more than five years.
“Our industry’s resilience is being severely tested, and tens of thousands of jobs are potentially at risk. The gold companies’ share prices are at multi-year lows, reflecting investors’ bearish outlook on gold price and growing uncertainty around the viability of South African production given its spiralling cost base,” she said.
“Now, more than ever, we need to create certainty in our industry and preserve jobs. Eventually we will need to reach an agreement with all unions. Whether that agreement sustains this industry for another generation or more is up to us.”
The NUM had tabled an opening wage demand of R10,500 for entry- level workers. The Association of Mineworkers and Construction (AMCU) are demanding R12,500, Solidarity demanded 12 percent and wanted a review of the retirement age.
Solidarity wants the retirement age moved from 60 to 63, and in some cases to 65, in order to promote the retention of critical skills.
In a statement UASA’s divisional manager responsible for mining industry workers, Franz Stehring, said the union demanded a R2,500 increase for entry-level employees in the first year, and a R1,000 increase in the second year, if a two-year agreement can be reached.
For miners, artisans, and officials, UASA was looking at a 15 percent increase in the first year and an 11 percent increase in the second year.
The union also wants housing allowances to be increased by R2,000 to R5,000, and for the retirement age to be raised from 60 to 63.
It further wants mining companies to cover 50 percent of medical expenses after retirement and a minimum R42,500 medical incapacity payout – up from the current R40,000
