Sibanye Gold inks wage deal

Sibanye Gold reaches a pay deal with three of the four unions at its operations.

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Johannesburg - Sibanye Gold, the largest producer in South Africa, reached a pay deal with three of the four unions at its operations after dropping a condition that all of the labour groups unanimously agree on it.

The agreement with the National Union of Mineworkers, the biggest union at the company, UASA and Solidarity, includes pay increases of up to 12 percent in the first year for entry-level workers, the Chamber of Mines said. The Association of Mineworkers and Construction Union, or Amcu, didn’t accept the terms.

“Sibanye had indicated that it wanted to sign an agreement with all four unions in the interest of labour stability and the sustainability of the industry,” Elize Strydom, chief negotiator for the Chamber of Mines, said in an emailed statement late on Wednesday. “It became clear that this was not possible” even after the talks were extended, she said.

The deal includes improved medical incapacity provisions, medical-insurance contribution rates and minimum severance pay. The salary and benefits package is backdated to July 1 and runs through June 30, 2018, according to the statement.

Union strategy

“We will be consulting with our members,” Manzini Zungu, a spokesman for Amcu, said by phone.

Amcu is ready to call a strike at gold operations, its members indicated at a meeting earlier this month. There is no majority union at Sibanye, so labour actions are protected, meaning miners don’t lose their jobs by taking part.

The NUM, UASA and Solidarity signed a three-year agreement October 2 with AngloGold Ashanti and Harmony Gold Mining. Amcu also refused to sign that deal, seeking higher pay for entry-level workers.

Mining accounts for more than half of South Africa’s exports and employs about 446 000 people. The commodity-price slump and power cuts earlier in the year spurred some mining companies to scale back output and try to reduce expenditures.

BLOOMBERG