Harmony Gold and labour unions have concluded a three-year wage deal, the first outside the Minerals Council SA’s central bargaining forum, which will see average pay increasing as much as 8.4%.
The deal, which was concluded after three months of negotiations, covers wages and conditions of service from July 2021 to end of June 2024. Riding high on buoyant metal prices, gold miners have this year been delivered strong results and returns to shareholders, and have come under pressure from unions to give more of the windfall to workers.
Among other things, the wage deal makes provision for a 6% salary increase per year for the next three years for miners, artisans and officials, while category 4 to 8 employees would receive an increase of R1,000 a year over the next three years, which translates to a 8.4% increase for these employees.
Harmony said the total average wage increase negotiated is 7.8% in year one, 7.4% in year two and 7% in year three. The increases compare with an inflation rate of 4.6% in July, and Reserve Bank projections that it will stay around the midpoint of its 3%-6% target range through to the end of 2023.
The housing allowance for workers will also be increased incrementally over the next three years, from R2,750 to R2,990 and then R3,240. A number of non-wage related and process issues have also been agreed to, including maternity and paternal leave, as well as medical incapacity and medical aid benefits.
The wage deal was struck with the Association of Mineworkers and Construction Union (Amcu), the National Union of Metalworkers of SA (Numsa) and a coalition comprising the National Union of Mineworkers (NUM), the United Association of SA (UASA) and Solidarity. Ninety-eight percent of Harmony employees are part of the bargaining unit covered by the agreement.
“This wage agreement reflects the strong partnership between Harmony and organised labour, demonstrating our commitment towards our long-term sustainability and our people,” said Harmony CEO Peter Steenkamp. “We would like to thank everyone involved for engaging constructively and keeping everyone’s best interests at heart.”
Solidarity general secretary Gideon du Plessis hailed the agreement, which was reached without a deadlock or a dispute process, as a victory for collective bargaining.
“It was also the first time that negotiations took place at mining level and not at a central level through the Minerals Council SA,” Du Plessis said. It was also the first time that the main mining unions, NUM, UASA and Solidarity, had negotiated as a coalition, something he described as a “victory for every employee”.
The focus would now shift to the Sibanye-Stillwater gold sector negotiations, which are heading for a deadlock. After three months of negotiations Sibanye’s salary offer stands at 2.6% for miners, artisans and officials, as well as a R300 increase for category 4 to 8 employees with a “meagre increase” for years two and three, according to Solidarity.
“Sibanye, which is pleading poverty at the negotiating table, will have to learn from Harmony and Gold Fields about following a progressive approach to salary negotiations.”
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