/ 23 August 2005

Gold sector signs wage deal

The wage deal between the Chamber of Gold Mines and labour unions was signed on Tuesday.

The United Association of SA (UASA) said in a statement that the wage deal has been formalised.

”Our members are quite happy with the agreement, and we will be continuing discussions on group specific issues as contained in the agreement with the employers,” said Uasa spokesperson Tim Kruger.

Uasa, the National Union of Mineworkers (NUM) and Solidarity declared a dispute with the chamber earlier this month after failed wage negotiations.

Tens of thousands of mineworkers belonging to NUM and Solidarity embarked on a strike which ended after the two unions agreed to the revised wage offer about two weeks ago.

Before Uasa could decide whether it would participate in the mass action, the strike ended.

The wage deal includes:

  • wage increases of between six and seven percent at the lowest job categories;

  • a wage increase in the second year of CPIX plus one percent, subject to a guaranteed increase of between 5,5% and six percent;

  • additional employer and employee contributions to the retirement fund; and

  • increases in the living out allowances (housing subsidies) as part of a continuing ongoing process of removing the legacy of the hostel system. – Sapa