'Just pay us the money'

19 June 2015 - 02:05 By Reuters

Gold producers will propose an "economic and social sustainability pact" when wage talks with trade unions begin on Monday - but the unions say they are interested only in the money. The unions, demanding pay increases ranging from 80% to more than 100% for their lowest-paid members, are uncompromising."We don't need schemes - we want money now," Joseph Mathunjwa, leader of the Association of Mineworkers and Construction Union, told a news conference.The National Union of Mineworkers has also said it would not water down its pay targets."If they put something on the table that improves the lives of our employees we will accept it, but it needs to be added to our demands," said NUM deputy general secretary William Mabapa.The talks, which include Africa's top gold producer, AngloGold Ashanti, and Sibanye Gold and Harmony Gold, are being held at a time when the industry is grappling with depressed prices, falling production and rising costs.Elize Strydom, the chief negotiator for the Chamber of Mines, said the employers' offer would include proposals for tackling employee debt, an issue linked to the high wage demands."The social compact will include sharing the gains if the gold price goes up, and if the price goes down, sharing the pain," she said.Strydom added that a "financial model" would also be proposed.When gold producers and unions sat down for wage talks two years ago bullion's price was at around $1250 an ounce, Johannesburg's gold mining index was near 1300, and Harmony was losing money, but now the industry looks even bleaker.Gold's spot price is below $1200 and the index is down 20%.According to the chamber, miners' costs between 2008 and 2014 rose on average by more than 20% a year, driven by power prices and above-inflation wage increases. Production over the past decade has declined by almost 8% a year.Worryingly for unions, the workforce on the mines has been falling, to 119000 last year from almost 180000 in 2004.Labour militancy has been on the rise, spurred by perceptions that two decades after apartheid wages remain too low. ..

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.