Chamber of Mines said that they are in receipt of the 48 hour notice of commencement of strike action.
JOHANNESBURG (Bullion Street): National Union of Mine Workers (NUM) which represents more than 60% of the workers in the industry, is expected to go on strike from Tuesday fowllowing the 48-hour strike notice given to Chamber of Mines who were involved in the wage negotiations with workers.
Chamber of Mines said that they are in receipt of the 48 hour notice of commencement of strike action. The country's Chamber of Mines, which negotiates on behalf of gold producers, said on Tuesday it had made a final offer to unions to increase basic wages by between 6 and 6.5 percent.NUM has been seeking a 60 percent increase while a more hardline rival wants pay hikes of up to 150 percent. The companies say these demands are unrealistic, given rising costs and falling bullion prices.
Chamber of Mines represented by AngloGold Ashanti, Gold Fields, Rand Uranium, Harmony Gold, Evander Gold Mine, Sibanye Gold, Village Main Reef) said that they will continue to make plans in anticipation of strike action, to ensure the continuation of essential services, and to ensure the safety and security of employees and assets. The chamber said they are sill open to discussions and reach an outcome acceptable to all.
Graham Briggs, Chief Executive of Harmony Gold outlined the final offer on the table, which was made to all unions – namely AMCU, NUM, Solidarity and UASA – as follows:
-an increase in basic wages of 6.5% for Category 4 and 5 employees (including rock drill operators);an offer of 6% on basic wage for Category 6 to 8, as well as to Miners and Artisans, and Officials; and living-out/accommodation allowances will be increased in accordance with CPI.
In addition, the employers have offered all employees within the bargaining unit the opportunity to earn an additional 1% on basic wages by way of a ‘Gain Share’ proposal. Harmony is proposing a continuation of its 1% profit share agreement.
The offer is for a two-year period, with the same increase offered for the second year. The proposed increase offered brings the average monthly guaranteed benefit for an entry level, underground employee in the gold sector to R9,170 per month. This includes the basic wage, the employer contribution to provident fund, the cost of a medical benefit, a housing benefit or allowance, a holiday leave allowance and a food allowance or benefit. It excludes UIF and other statutory contributions. Average overtime and bonus income would amount to R1,750 per month, bringing the total monthly package – on average – to around R10,920 per month.
courtesy of bullionstreet.com
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