South Africa's Gold Producers Sign Two-Year Wage Agreement Amid Threat of Strike

Strategic Insights -

South Africa's largest gold producers have signed a two-year wage agreement with unions, averting a threatened strike. The agreement, which replaces expired contracts, will see wages rise by up to 10.5% this year. The deal affects entry-level employees, miners, officials, and other workers, with increases ranging from 9% to 10.5%. The agreement also sets a new minimum salary of 4,000 rand ($517) per month for entry-level underground workers by July 2010.

Key Takeaways:

  • The two-year wage agreement was signed by South Africa's largest gold producers, including AngloGold Ashanti Ltd., Gold Fields Ltd., and Harmony Gold Mining Co.
  • The agreement will see wages rise by up to 10.5% in the first year, with increases ranging from 9% to 10.5% depending on job category and colliery.
  • The minimum salary for entry-level underground workers will be increased to 4,000 rand ($517) per month by July 2010.
  • Coal producers represented by the union also concluded a two-year wage agreement, with increases ranging from 9% to 11% in the first year and a further CPI plus 1% in July 2010.
  • The agreement marks the first time wage negotiations have been settled without being referred to the Commission for Conciliation, Mediation and Arbitration.

Statistics:

  • Wages will increase by up to 10.5% in the first year, with a further CPI plus 1% increase in July 2010.
  • The minimum salary for entry-level underground workers will be 4,000 rand ($517) per month by July 2010.
  • Coal producers will increase wages by between 9% and 11% in the first year.
  • The pay of missers of the National Union of Mineworkers, Solidarity and UASA will be increased by CPI plus 1% in July 2010.

Sources:

  • Dow Jones Commodities News via Comtex
  • Dow Jones Newswires