[miningmx.com] – THE Chamber of Mines of South Africa (CoM) said it had received wage demands for gold company members from the National Union of Mineworkers (NUM), but stopped short of confirming a report by Reuters today which said NUM wanted an average increase of 60% for its members.
Reuters said NUM was seeking an entry-level minimum monthly wage of R7,000 for surface workers and R8,000 for underground miners.
Elize Strydom, the industrial relations adviser at the CoM, said the minimum wage for surface workers is currently R4,700 and R5,000 for underground miners. This is a demand of 60%, Reuters reported.
A spokesperson for the CoM said it was not possible to talk of a single inflationary figure. “It’s a very complicated thing because unions are also demanding benefits for workers which have to be included in the figure. It will come out in time.”
Based on the Reuters report, however, NUM’s wage demands see no softening in its stance notwithstanding the recent $200 per ounce decline in the gold price which has forced gold companies to cut spending.
NUM also said it wanted 15% hikes for “all other wage categories”, which would refer to more experienced and skilled workers, said Reuters.
Nick Holland, CEO of Gold Fields, said earlier this month that double digit wage increases could not be sustained by his company.
“I haven’t seen any wage demands but we can’t give double-digit increases, especially with declining productivity,” said Holland.
He added the group would be communicating the need for “sharing the growing cake” in preference to “divvying up a smaller cake”.
In its statement today, the CoM said it would seek to reach common ground “… during a particularly challenging period within the gold industry, in negotiations that are expected to begin in early to mid-June”.
The CoM said it would also pursue agreement to a protocol that will “guide conduct” during the period of negotiations which, set against a power shift among South Africa’s unions, are expected to be more difficult than in previous years.
“Our draft protocol states that all parties will ‘seek to achieve an early settlement that is fair for employees, the unions and the companies, and avoid a protracted negotiating process which brings uncertainty and instability for all’,” said Strydom.
“We appeal to all parties to explore every option in trying to reach settlement without resorting to damaging industrial action, and to reach agreements that will strike a balance between what is affordable to the companies and meets the expectations of the employees,” she said.
Based on CoM records up to March, the NUM represents approximately 65.5% of employees within the relevant bargaining categories at these member mines, the CoM said.
