Coal producers and unions reach wage agreement

Coal producers have reached a wage agreement with the National Union of Mineworkers (NUM)‚ signalling an end to a strike that started on October 4.

Striking mineworkers are expected to return to work by no later than Wednesday.

Announcing the agreement‚ the Chamber of Mines‚ which represented the coal producers at the negotiations‚ said that two other unions‚ UASA and Solidarity‚ had already indicated their members’ acceptance of the wage offer on September 14.

The coal producers involved in the wage deal‚ which also includes conditions of service‚ are Anglo Coal‚ Delmas‚ Exxaro‚ Kangra‚ Koornfontein‚ Msobo and Glencore.

Motsamai Motlhamme‚ head of Employment Relations of the Chamber of Mines said: “Given that the industry is facing subdued demand and both price and cost pressures‚ the agreement reached is at the limit of what is affordable. After months of negotiations‚ we have reached a settlement which represents a reasonably balanced outcome in the best interests of employees and the industry.”

The agreement is for two years effective 1 July 2015‚ in terms of which:

• Most category 4-8 employees will receive increases‚ staggered over a period of time‚ of between R750 and R1‚000 per month in year 1 and guaranteed increases of 7.5% in year 2.

• Most employees in the higher categories will receive increases of between 5.0% and 7.5% in both years.

• Increases to the living out allowance and housing allowance vary from company-to-company.

Motlhamme commended all parties for “the peaceful conduct during the strike almost without exception”.