Daily Dispatch

AngloGold in wage deal with militant union

- ALLAN SECCOMBE

AngloGold Ashanti was the first major gold producer to sign a three-year wage agreement with three unions, staving off the potential strike looming over three other companies, including SA’s largest gold miner, Sibanye-Stillwater.

Although AngloGold was one of four companies under the auspices of the Minerals Council SA involved in the talks with four unions, it was the first to reach an agreement after the unions declared disputes with Sibanye, Harmony Gold and Village Main Reef.

But the National Union of Mineworker­s – the secondlarg­est union at AngloGold’s Mponeng mine and its Mine Waste Solutions tailings retreatmen­t operation, representi­ng nearly 33% of the firm’s 7,918 employees – did not sign the wage agreement.

Commentato­rs noted surprise that the Associatio­n of Mineworker­s and Constructi­on Union (Amcu), seen as the more militant of the unions, would be first to reach a wage agreement.

A new shift system included in the agreement is important for AngloGold’s loss-making Mponeng mine, said Chris Sheppard, the head of the SA business.

Mponeng made an interim loss of $13m in the six months to end-June, more than doubling the $6m loss the year before.

“The new shift arrangemen­t is an important factor, as it provides an opportunit­y for us to realise improvemen­ts in productivi­ty and safe production, which are essential to the long-term sustainabi­lity of the business,” Sheppard said.

“The agreements on pay and shift arrangemen­ts are key pillars in the strategy to complete the turnaround of the business, which represents around 13% of the company’s total production.”

AngloGold agreed to increase pay for its lowest-earning employees by R1,000 a month, which includes a R300 a month payment for agreeing to working the new shift arrangemen­t in the first year.

The second and third years of the deal would entail wages rising another R1,000 a month, respective­ly.

“The agreement reached between AngloGold Ashanti and Amcu, Uasa and Solidarity – which together represent 62% of employees in the bargaining unit at AngloGold Ashanti – is focused on optimising the firm’s remaining operation in SA,” said the council’s chief negotiator, Motsamai Motlhamme.

Amcu has urged the other firms to follow AngloGold’s offer. “We can only hope that other mine companies can follow the same precedent as we continue in the conciliati­on processes with them,” said Amcu general secretary Jimmy Gama.

With the unions in dispute with Sibanye, Harmony and Village Main Reef, talks are now facilitate­d by the Commission for Conciliati­on, Mediation and Arbitratio­n.

“Talks with all unions have continued to be constructi­ve,” Motlhamme said.

The centralise­d collective bargaining model allows for separate companies to reach different agreements with the unions as evidenced in more than 30 years of the system.

In the past, smaller companies have reached different agreements from their bigger peers as unions acknowledg­ed the varying abilities of companies to absorb wage increases.

 ??  ?? JIMMY GAMA
JIMMY GAMA

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