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Sibanye-Stillwater signs gold wage agreements

Sibanye-Stillwater (JSE:SGL) has signed a three-year gold wage agreement with three of the four South African mineworkers’ unions it has been negotiating with since July.
Sibanye-Stillwater signs gold wage agreements Sibanye-Stillwater signs gold wage agreements Sibanye-Stillwater signs gold wage agreements Sibanye-Stillwater signs gold wage agreements Sibanye-Stillwater signs gold wage agreements

Sibanye-Stillwater has finally come to a wage agreement with three mineworkers' unions

Staff reporter

The National Union of Mineworkers, Solidarity and UASA, which represent 32,231 Sibanye-Stillwater employees, agreed on a basic wage increase for category 408 surface and underground employees of R700 (US$48.92) in the first and second year and R825 in the third.

The parties also agreed that miners, artisans and officials would receive increases of 5.5% in the first year and the greater of 5.5% or the consumer price index in the second and third years.

The agreement will be backdated to the period starting July 1.

Sibanye-Stillwater was the last major South African gold miner to conclude negotiations, with AngloGold Ashanti, Harmony and Village Main Reef having reached agreements  during September and October.

Despite the drawn out negotiations and opportunities for unions to take industrial action, no strike was declared during the four months of talks.

In addition to the wage increases, the unions and Sibanye-Stillwater agreed the current living-out allowance would be increased by R50 to a maximum R2,150 per month from September 1 onwards, with an increase by R75 to a maximum R2,225/month on September 1, 2019 and by R100 to a maximum R2,325/month the year after.

Sibanye-Stillwater also agreed to increase the minimum medical incapacity benefit of R55,000 to R60,000 over the three-year period and also guaranteed a minimum severance payment to R50,000.

It said female employees would be entitled to four months of paid leave with an option of spreading the four months paid maternity leave over a period of six months.

Sibanye-Stilllwater was still engaging with the foruth union, the Association of Mineworkers and Construction Union (AMCU), as was Harmony, although at the latter, AMCU represnted only a small minority of mineworkers.

The miner's shares were up 1.9% Thursday to R8.56 per share.