Rustenburg - The wage demands tabled by four trade unions in the gold sector are unaffordable, gold producing companies said on Wednesday.
The companies said the demands would add an additional R16.5 billion in costs across the five gold companies. The industry’s total wage bill was R23.5 billion in 2014.
“Acceding to these demands would threaten the sustainability of our industry, and would jeopardise almost all current jobs,” the companies said in a statement.
The companies offered guaranteed employment provided that the profit margin at operating unit level (after all costs have been allocated) does not fall below a profit margin of six percent.
Guaranteed annual increases in basic wages for entry-level underground workers from 1 July each year. The offers range from increases of R450 (7.8 percent) for Harmony, R625 (11.1 percent) for Sibanye Gold to R750 (13 percent) for AngloGold Ashanti.
In the case of miners, artisans and officials, the offers range from 4.5 percent for Harmony, five percent for Sibanye Gold, and six percent for AngloGold Ashanti.
Speaking on behalf of the Chamber of Mines, Dr Elize Strydom, said the mining companies’ offers were substantial.
“Even before the profit share and the social sustainability proposals, our offers at entry level far exceed inflation and settlement areas in the past 10 years.
“And, importantly, employees will be able to influence their companies’ profitability through their efforts, and their share in this through the gain-share. The companies have appealed to the unions to actively engage in the process of negotiations, and to take these offers to employees for serious consideration.”
Five gold producers- AngloGold Ashanti, Evander Gold Mines, Harmony, Sibanye Gold and Village Main Reef, meet with four trade union on Wednesday - the last day of the third round of negotiations.
The companies are negotiating with the Association of Mineworkers and Construction Union (Amcu), National Union of Mineworkers (NUM), Solidarity and Uasa.
Solidarity demanded 12 percent and a review on the retirement age. Amcu demanded R12 500 while the NUM reportedly demanded R10 500.
Trade union Uasa said it had been mandated to move away from the traditional “basket of items” approach, due to the huge inequalities and historical discrepancies in the mining industry.
ANA