Harmony Gold seals wage hike deal with five unions

Harmony Gold and labour unions have concluded a threeyear wage deal, the first outside the Minerals Council SA’s central bargaining forum, average pay rising as much as 8.4%.

The deal, concluded after three months of talks, covers wages and conditions of service from July 2021 to end-June 2024. Riding high on buoyant metal prices, gold miners have delivered strong results and returns to shareholders, and have come under union pressure to give more of it to workers.

Among others, the wage deal makes provision for a 6% salary increase per year for the next three years for mineworkers, artisans and officials, while category 4 to 8 employees receive an increase of R1,000 a year over the next three years — a 8.4% raise for these employees.

Harmony said the total average wage hike negotiated is 7.8% in year one, 7.4% in year two and 7% in year three. They compare with an inflation rate of 4.6% in July, and Reserve Bank projections that it will stay around the midpoint of its 3%-6% target range to the end of 2023.

The housing allowance for workers will also be increased incrementally over the three years, from R2,750 to R2,990 and then R3,240. A number of nonwage-related and process issues have also been agreed to, including maternity and paternal leave, as well as medical incapacity and medical aid benefits.

The deal was struck with the Association of Mineworkers and Construction Union (Amcu), the National Union of Metalworkers of SA (Numsa) and a coalition of the National Union of Mineworkers (NUM), the United Association of SA (Uasa) and Solidarity. About 90% of Harmony employees are part of the bargaining unit.

“This wage agreement reflects the strong partnership between Harmony and organised labour, demonstrating our commitment towards our longterm sustainability and our people,” Harmony CEO Peter Steenkamp said. “We would like to thank everyone involved for engaging constructively and keeping everyone’s best interests at heart.”

Solidarity general secretary Gideon du Plessis hailed the deal, reached without deadlock or a dispute process, as a victory for collective bargaining.

“It was also the first time that negotiations took place at mining level and not at a central level through the Minerals Council SA,” Du Plessis said. For the first time too the main mining unions, NUM, Uasa and Solidarity, negotiated as a coalition, a “victory for every employee”, he said.

The focus will now shift to the Sibanye-Stillwater gold sector negotiations, which are heading for deadlock. After three months Sibanye’s offer stands at 2.6% for workers, artisans and officials, and a R300 raise for category 4 to 8 employees with a “meagre increase” for years two and three, Solidarity said.

“Sibanye, which is pleading poverty at the negotiating table, will have to learn from Harmony and Gold Fields about following a progressive approach to salary negotiations.”