/ 4 June 2009

Unions reject gold mines’ pay offer

Two major trade unions in the gold mining sector have rejected a 6% pay increase in ongoing wage talks.

Solidarity and the National Union of Mineworkers on Wednesday rejected the Chamber of Mines’ latest offer, with the latter threatening strike action.

NUM said it was ”a pittance offer” while Solidarity charged it was far below the current consumer price index of 8,4%. NUM would start talks with its members on Thursday ”to map a way forward” while Solidarity refused to present the offer to its members.

Solidarity spokesperson Jaco Kleynhans said in a statement: ”The financial results of the gold mines showed improved performance, thanks to the excellent gold price.

”Together with the current global financial insecurity, gold is gearing up for another bull-term. Therefore, gold producers are in a strong position to compensate their employees with a good living wage.”

NUM reiterated its demand of a 15% pay rise and emphasised that ”as per congress mandate” it would not settle for anything less. It said its members would have to decide whether a strike was necessary.

The Chamber of Mines said in a statement its latest offer was an improvement on the last and was in addition to ”other offers tabled by the companies which have significant cost implications”.

This included an increase in the minimum lump sum medical incapacity benefit, an extra month’s paid maternity leave for pregnant underground workers for whom no suitable work could be found, and an increase in meal allowances.

”We are committed to finding solutions and a real balance between the needs of the employees and of the companies,” said Elize Strydom, negotiating on behalf of gold mining companies.

”We have, therefore, also proposed to the unions that we set up task teams to deal with appropriate entry level remuneration for underground workers, and also mechanisms to promote home ownership.”

Further wage increases could follow if ”constructive progress” could be made on the other offers made by the companies.

The third round of wage negotiations in the sector would continue on June 11. – Sapa