Coal sector reaches 3-year wage deal

Miners hard hats
Miners hard hats

Anglo American Coal‚ Delmas Coal‚ Exxaro Coal Mpumalanga‚ Glencore Operations SA‚ Koornfontein Mines and Msobo Coal have agreed on a three-year wage settlement with the National Union of Mineworkers.

The Chamber of Mines‚ on behalf of employers‚ said the final agreement is effective 1 July 2017‚ in terms of which:

- Entry-level to operator employees employed at the larger companies will receive increases‚ some on a once-off basis and others staggered over two payments‚ of R1‚100 in the first year and guaranteed increases of between 7.5% and 8.5% in the second and third years.

- Entry-level to operator employees employed at the smaller companies will receive increases ranging between 6 and 7.5% in the first year‚ and guaranteed increases ranging between 6% and 7.5%‚ and in other cases‚ CPI+1%‚ in the second and third years.

Motsamai Motlhamme‚ head of employment relations at the Chamber of Mines said: “After months of negotiations‚ we have reached an agreement which not only represents a reasonably balanced outcome‚ but will also secure stability in the industry for a three-year period. This is in the best interests of employees‚ the industry and the country as a whole.”

Labour unions UASA and Solidarity previously accepted the Chamber’s offer.

Confirming a deal had been struck‚ the NUM said in a separate statement: "The NUM wishes to express its sincere gratitude to its members in the coal sector for the manner in which they behaved during the negotiation period until they gave us the mandate to sign this wage agreement. Our members are excited and they gave us the mandate to sign the wage agreement."