South African Union snubs higher pay offer by gold producers

August 5, 2015

The second-biggest union in South Africa’s gold industry rejected a pay offer from operators including AngloGold Ashanti Ltd., stopping short of calling a strike.

Association of Mineworkers and Construction Union members gathered at Sibanye Gold Ltd.’s Beatrix mine Sunday to consider the final wage proposal made by producers such as Harmony Gold Mining Co. The union speaks for about 30 percent of the 94,500 employees represented in the talks.

“If we need to go march at their offices, we will,” AMCU President Joseph Mathunjwa told thousands of workers at the stadium next to a mine shaft about 300 kilometers (186 miles) south of Johannesburg.

Sibanye and AngloGold, the world’s third-largest producer, proposed on July 30 to raise monthly pay for entry-level workers by 1,000 rand ($79) annually for the three years started July 1. Harmony offered a 500-rand increase. Basic pay is currently about 5,800 rand. Living-out allowances, for miners who choose not to live in provided housing, will be raised by 100 rand in the first year from 2,000 rand now.

The crowd  held banners showing AMCU’s demand of 12,500 rand a month for basic pay, more than double the current wage. Only one of the union leaders who provided feedback on the stage said workers should accept the offer.

The National Union of Mine-workers, the biggest labour group in gold, lowered its demand last month for basic pay to 9,500 rand. Still, that’s at least 60 percent more than the current wage.

“The way forward is go back to employers and give them the feedback that their offer has been rejected by the majority of AMCU members,” Mathunjwa told reporters after the meeting. The union will gather again after it hears back from the companies, he said.

Subscribe to our Newsletter

* indicates required

Intuit Mailchimp