Mittal Steel has extended a long-term wage agreement with three unions, the company said on Monday.
The unions involved in the agreement reached last month were the National Union of Metal Workers of South Africa, Solidarity and the United Association of South Africa.
”The initial long-term wage agreement, which was negotiated in 2004, would have expired on June 30 2007,” read a statement.
The agreement comprises the original components: an increase on guaranteed pay and variable pay, which is based on the achievement of individual and operational targets.
Mittal Steel will now begin discussions with the unions on the No Forced Retrenchment Agreement, which expires in December 2006.
”We would like to engage with unions on this matter before its expiry,” said outgoing chief executive Davinder Chugh. — Sapa