/ 15 July 1997

Chamber, NUM in historic deal

MONDAY, 4.00PM

THE Chamber of Mines and the National Union of Mineworkers on Monday announced a historic accord linking wage increases to improved productivity and increased production in the gold mining industry.

Both parties hailed the agreement as being in the best interests of the gold mining industry and as the best option for its future and stability.

Chamber said the accord is “of almost historical proportions”, in terms of which the two parties agreed to the objective of increasing annual gold production by 90 tons countrywide.

Individual gold mines and the NUM will negotiate at company level on the particular arrangements to improve productivity and production. Negotiations are to commence immediately with a mandate to report back to the Chamber/NUM plenary negotiating team.

The Chamber’s Adrian du Plessis said the accord has four main elements: The first is a proposed two-year wage cycle, an important step towards eliminating annual wage talks. The second is a range of significant wage increases for lower paid workers, some as high as 25%, while the third element provides that the balance of employees will receive wage increases of nine to ten percent. The fourth element is “an agreement that wage objectives can only be met to the extent that productivity and production targets are met”. NUM secretary-general Kgalema Motlanthe said the accord represents a significant breakthrough and will lay the basis for sustained growth in the gold mining industry. He added that the NUM is confident the targets for additional output will be reached, as there is no alternative.