Sibanye-Stillwater sticking point in talks

Salary negotiations in the gold sector will resume tomorrow when the Minerals Council is expected to make a final salary increase offer to trade unions, Solidarity trade union said.

The council has so far been focussing only on category four to eight underground employees, while the tradespeople and other senior miners had received a ridiculouslhy offer of below the inflation rate, ranging from 3.5% (Sibanye-Stillwater), 4% (Village Main Reef), to 4.5% (Harmony and AngloGold Ashanti), Solidarity’s general secretary, Gideon du Plessis, said yesterday.

The present offer to lower-category employees, however, varied from 6% to 7.2%.

If skilled employees again receive a lower offer than the lower-category workers, chances are that Solidarity’s members will reject it on principle, Du Plessis said.

Solidarity said it appreciated the fact that mining, and especially the gold sector, was under pressure, although both Harmony and AngloGold Ashanti had been recording very good figures – with the latter expecting a R1.2 billion profit for the six months to the end of June 2018.

The problem, however, was Sibanye-Stillwater, which was “withholding” the other mining houses from making a realistic offer, which could result in involving them in a dispute. It was also clear that Sibanye’s position was creating tension among employers. Sibanye’s excessive takeovers now were resulting in its employees, as well as the other mining houses, being prejudiced by its high burden of debt. “Furthermore, mining houses

When it comes to salary increases for skilled employees, mining houses try to cut costs.

rely on the argument that they are vulnerable because they are price takers and their wage accounts also are very high. This is understandable, because the mining industry is labour-intensive and top management’s salaries form part of overhead costs.

“It is a pity, however, that when it comes to salary increases for skilled employees, mining houses try to cut costs instead of putting up a better fight in areas where they are price takers, such as acting in a more activist manner against Eskom’s power tariffs,” Du Plessis said.

Solidarity will reconsider if the council comes up with a favourable and equitable offer to skilled employees, Du Plessis said. – ANA