Business
South Africa: Gold miners sign new deal – labor unrest in sector ends
Striking South African gold miners have signed a pay deal to end months of labor unrest, the country’s main mining union and mine owners said on Thursday.
“Members have accepted a new pay structure,” the National Union of Mineworkers (NUM) said.
“The worst in the gold sector is over,” spokesman Lesiba Seshoka told AFP.
The Chamber of Mines confirmed its offer of cumulative wage increases of 11 percent to 20.8 percent had been accepted.
On top of a July agreement to up wages, mine owners had offered a deal that will see “pay rates go up from 1.5 percent to 10.8 percent, while entry level wages rise to 5,000 rand (US$ 575.00) up from 4,840 rand, (US$ 557.00)” the NUM said in a statement.
The strikes halted production at numerous mines across the gold mining belt, triggered by the Lonmin platinum mine wage increases of up to 22 percent.
Gold mine owners welcomed the deal.
While the platinum and coal sectors is not covered by the deal, and there may still be pockets of resistance in the gold sector, mine owners are starting to count the cost of what may prove to be the worst labor unrest in South Africa since the 1980s.
Illegal strikes have cost the industry at least 10 billion rand (US$1.15 billion) already this year, the Chamber of Mines top economist told AFP on Thursday.
“This number can be doubled if the lost procurement, wages, capital expenditure, taxes and other contributions that are not happening due to the strikes are included in the calculation,” Roger Baxter said.
Several gold mining firms had resorted to mass dismissals of striking workers in an attempt to force them to return to work.
“Negotiations took almost three weeks and were robust and vigorous at times,” NUM secretary general Frans Baleni said.
“However, the new deal represents a major step forward for the industry as it removes an anomaly and establishes a firm basis from which to negotiate the 2013 agreement with the Chamber,” he said.
Copyright 2012 AFP