SA gold mine workers won’t budge on latest pay offer

Gold sector workers in South Africa are adamant they want to see a substantive increase this year, as they have not enjoyed the fruits of democracy in the country.

JOHANNESBURG - 

Unionised gold sector workers in South Africa won't budge until they receive a "double digit" wage increase from the local gold sector, as they now want to enjoy the fruits of democracy in the country.

Spokesperson for the National Union of Mineworkers (NUM) Lesiba Seshoka told Mineweb today that workers feel they have been undermined by the sector for too long and they wanted the industry to make a "substantive move" to meet their demands this year.

Seshoka said 1 August - the date scheduled for the next round of negotiations - would be the last round of negotiations with the SA Chamber of Mines as the union expected the industry to lift its wage offer to their demand level of 15% by then.

If the Chamber, representing the gold industry, does not come to the party with a good offer, the union would explore "other avenues", which involve mediation by the Commission for Conciliation Mediation and Arbitration (CCMA), before the union "starts gearing up for a strike".

Seshoka said the industry knew what a good offer was and the union would reasonably come to the party if a real increase that exceeded inflation were on the table.

"We totally reject the latest gold offer of a 7.5% increase. We believe we (union and Chamber) are still miles apart."

He added that this year's hard push for real increases by the unions originated at a central committee meeting earlier this year where over 1,000 delegates from across the country conveyed workers' clear wishes for double digit increases this year.

More than 18,000 union members comprising mostly of underground and surface workers have made their demands for years and feel that 13 years into democracy in South Africa they have still not seen its benefits.

The SA Chamber of Mines said last night it made a "new offer" of 7.25% to the NUM and remained committed to finding a solution on outstanding union demands such as higher contributions to retirement funds, funeral cover, service increment and "numerous special allowances".

There were several other demands that the industry was unable to meet due to the "cost implications", including higher contributions to retirement funds, funeral cover, service increment, and "numerous special allowances".

The Chamber said it responded to a number of other union demands by offering an inflation-linked increase to the living-out allowance of R1,000 (US$147) per month, a special wage increase for rock drill operators over the next two years, which will boost pensionable earnings to R4,000 ($586) per month and an increase of 8.25% in the basic wages for certain artisans. A merit-based increase for officials was also introduced.

Chief negotiator Elize Strydom said the Chamber hoped to make quick progress on the outstanding demands and to finalise negotiations "as soon as possible".

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