South Africa’s gold producers are mandated to propose a minimum wage increase of at 20 percent before being considered by the National Union of Mineworkers, which is the largest labor group in the country.
NUM Secretary General David Sipunzi declared that a preliminary proposition of 20 percent increase can be discussed with union members during a recent interview at Johannesburg last week. He said the NUM will not consider anything less than what they offered.
The union demanded a basic pay increase of over 80 percent which is a monthly wage of 10,500 rand or $860 for entry-level laborers. NUM officials began wage negotiations with companies which included Anglo Gold Ashanti Limited, Harmony Gold Mining Company and Sibanye Gold Limited during the week. The companies are planning to make an offer next Monday after finalizing details last June 24.
The secretary general clarified the union will not turn down a supposed social compact suggested by the mining firms. However, they just do not want the accord to be part of their concessions. The gold producers maintain that the social pact will include job statistics and living conditions of miners as part of said wage negotiations.
Meanwhile, the Association of Mineworkers and Construction Union also asked that entry-level basic wages should be more than doubled to 12,500 rand every month. It is the second largest labor group in South Africa’s gold mining sector.