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AngloGold Ashanti [JSE:ANG] has concluded a wage agreement with three major unions, The Minerals Council said on Monday.
The agreement is with the Association of Mineworkers and Construction Union (AMCU), UASA (formerly the United Association of SA) and Solidarity, and covers wages and conditions of service for the period July 1, 2018 to June 30, 2021.
The three-year agreement was concluded under the Minerals Council and allows for increases to the basic wage of Category 4-8 employees. (Categories are an indication of pay scale, with lower categories earning less.)
The employees will receive increases to their basic wage of R700 in year one, R800 in year two and R900 in year three. Miners, artisans and officials will receive increases of 5.5% for each year of the agreement.
New shift arrangements
In addition to the basic wage, the agreement was concluded on acceptance of revised shift arrangements at AngloGold Ashanti’s operations.
There is a shift arrangement increase of R300 in year one, R200 in year two and R100 in year three for Category 4-8 employees; and 1% each year for miners, artisans and officials.
Chief negotiator on behalf of the gold producers, Motsamai Motlhamme, said the agreement between the company and the three unions – who together represent 62% of the 7 918 employees in the bargaining unit at AngloGold Ashanti – aims to optimise company’s remaining operation in South Africa.
“We are pleased that the parties have been able to engage and conclude an agreement with no disruption to the business.
“The agreement was reached within a flexible negotiating structure which has evolved over a number of years to allow for companies with vastly different economic and operating circumstances to be accommodated,” said Motlhamme.
Several non-wage issues were also agreed upon.
These include an increase in medical incapacity benefit to R60 000 over the three-year period; an increase of the minimum severance pay to R40 000 over the three-year period; an extension of the medical contribution for category 4 to 8 employees to 60% for employers and 40% employees for the duration of the agreement; and increase in the living out allowance of R100 per year for the duration of the agreement.
READ: AngloGold sees return to profit as it exits SA mines
Meanwhile, wage negotiations between miners Harmony, Sibanye-Stillwater and Village Main Reef and unions AMCU, NUM, UASA and Solidarity are continuing under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA).
“Discussions with all unions have continued to be constructive and we are hopeful that we will be in a position to report further progress soon,” said Motlhamme.
By mid-afternoon the share price of AngloGold Ashanti was down 0.35% at R118.01 per share.
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