/ 19 August 2013

Gold wage-offer gap seems too wide to close, says NUM

Gold Wage Offer Gap Seems Too Wide To Close, Says Num

The National Union of Mineworkers (NUM) foresees an outcome to the talks where it will be granted a certificate of non-resolution from the Commission for Conciliation, Mediation and Arbitration (CCMA), said union spokesperson Lesiba Seshoka.

That would entitle the union to declare a work stoppage, with miners protected from dismissal.

"I smell a strike in the air," said Seshoka.

Negotiations over wages stalled on July 24 after the unions rejected an offer of a 5% pay increase and a housing- related allowance. The dispute moved to mediation at the CCMA, which is scheduled to have a meeting with the sides on Tuesday. That process can last as long as 30 days.

The Chamber of Mines, representing companies including AngloGold Ashanti, the world’s third-largest producer, Gold Fields, Harmony Gold Mining and Sibanye Gold, raised its offer on August 13 to 5.5% with additional compensation.

"The producers remain hopeful that a resolution will be achieved without resorting to industrial action,” said Charmane Russell, a spokesperson for the chamber.

"Industrial action will be incredibly damaging for the industry, employers and employees, and South Africa as a whole." The CCMA process can be extended by agreement, she said.

The NUM has asked for a 60% increase in wages for entry-level jobs. It represents 64% of gold mining employees. – Bloomberg