JOHANNESBURG, July (ANA) - South African gold mining companies on Wednesday tabled their three-year wage proposals, ranging from 5.5 percent and 6.5 percent for underground employees, and between 3 and 4.5 percent for miners, artisans and officials.
Wage negotiations between four of the biggest gold producers and workers unions were continuing on Wednesday for the second day at a centralized collective bargaining forum.
The companies; AngloGold Ashanti, Harmony Gold, Sibanye-Stillwater and Village Main Reef; directly employ around 80,000 people collectively.
Workers are demanding a salary of R9,500 for above the surface employees and between R10,500 and R12,500 for entry-level underground staff over and above a R5,000 housing allowance.
The Minerals Council South Africa, formerly the Chamber of Mines, earlier said that the mining industry was facing major challenges despite the gold sector remaining a significant contributor to the South African economy.
The companies tabled different offers given that they find themselves in different circumstances. In total, there were at least 137 demands tabled, 62 of which have cost implications for the companies, and many of them significant.
Motsamai Motlhamme, Minerals Council chief negotiator, said the gold producers have to strike a balance between expectations against a background of a stagnant gold price, rising costs and falling profitability of the sector as well as the fact that inflation stands at an estimated 4.6 percent.
"The industry has sought to find a balance between employees' expectations and preserving the long-term viability and sustainability of the industry," Motlhamme said.
Among the key benefits on which offers or concessions have been made include an extension of the medical contribution for category 4 to 8 employees to 60 percent companies and 40 percent employees for the duration of the agreement.
Concessions were also made on the increase of the medical incapacity benefit to R60,000 over a three-year period, an increase of R2,000 per year in severance pay, and an agreement was reached to engage at a company level with the Igula Provident Fund on compliance by these funds with all applicable legislation.
The parties will meet again later this month on July 25, at which time the unions may seek clarity on the offers made, and respond to the offers.
- African News Agency (ANA)
