Harmony Gold wage agreement – a victory for collective bargaining

16 September 2021

After three months of negotiations Solidarity today reached a three-year wage agreement with Harmony Gold. This agreement has been concluded in collaboration with the trade unions, NUM, AMCU, UASA and NUMSA.

Among other things, the agreement makes provision for a 6% salary increase per year for the next three years for miners, artisans and officials, while Category 4 to 8 employees would receive an increase of R1 000 per year over the next three years. The housing allowance will be increased over the next three years from R2 750 to R2 990, and to R3 240.

“To ensure that miners benefit from modernisation rather than being disadvantaged by it, the agreement also makes provision for ongoing consultation between the company and trade unions on aspects related to the Fourth Industrial Revolution, and in particular the implementation of modern mining technology,” Solidarity General Secretary Gideon du Plessis said.

Du Plessis is of the opinion that the focus should now shift to the Sibanye-Stillwater gold sector negotiations which are heading for deadlock. “After three months of negotiations Sibanye’s salary offer stands at 2,6% for miners, artisans and officials and a R300 increase for Category 4 to 8 employees with a meagre increase for years two and three. Sibanye’s offer is well below the agreement reached at Gold Fields’ South Deep Mine -ranging between 6% and 8%, and it is also lower that the Harmony settlement reached today. Sibanye, which is pleading poverty at the negotiating table, will have to learn from Harmony and Gold Fields about following a progressive approach to salary negotiations. At the moment Sibanye is spending more time preparing for a possible strike than trying to reach a settlement,” Du Plessis contended.

Solidarity describes the Harmony Gold agreement as a victory for collective bargaining. “The settlement was reached without deadlocking or a dispute process. It was also the first time that negotiations took place at mining level and not at a central level through the Minerals Council South Africa. It was also the first time that the three traditional mining unions, namely Solidarity, the NUM and UASA negotiated jointly under the banner of a coalition – a victory for every employee,” Du Plessis concluded.

Issued by Gideon du Plessis, General Secretary, Solidarity, 16 September 2021