DOCUMENTS

Lonmin and AMCU: The agreement

Lonmin - AMCU
27 June 2014

Company states that in order to fund increases productivity improvements of +10% per annum will be required

AGREEMENT IN RESPECT OF THE REVIEW OF WAGES, SALARIES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT

2013 - 2016

between

LONMIN PLATINUM

COMPRISING WESTERN PLATINUM LIMITED AND EASTERN PLATINUM LIMITED IN RESPECT OF THE MARIKANA OPERATIONS ONLY

(hereinafter referred to as "Lonmin Platinum")

and

THE ASSOCIATION OF MINEWORKERS AND CONSTRUCTION UNION

as principal and on behalf of its members in the Bargaining Unit

(hereinafter referred to as "AMCU")

A PREAMBLE

1. Lonmin Platinum and AMCU ("the parties") have been involved in negotiations and mediation processes aimed at resolving the wage dispute which led to the strike that commenced on 23 January 2014. The parties have agreed to settle the dispute in· accordance with this agreement.

8 INTRODUCTION

2. The parties have been engaged in negotiations and mediation processes with regard to the review of wages and other terms and conditions of employment for the period 1 October 2013 to 30 June 2016 in respect of the Bargaining Unit as described in the Recognition Agreement.

3. AMCU is acting on its own behalf as principal and in a representative capacity on behalf of its members falling within the Bargaining Unit.

4. The parties have concluded the negotiations and mediation processes and the parties' record the terms of their agreement below.

C APPLICATION OF AGREEMENT

5. This agreement is recognised by the parties to constitute a collective agreement within the meaning defined in Section 213 of the Labour Relations Act, 66 of 1995 as amended ("the LRA").

6. This agreement shall apply to and bind the parties to this agreement, all AMCU members employed by Lonmin Platinum within the Bargaining Unit and employees who are not members of AMCU but who fall within the Bargaining Unit, with the exception of those employees that are members of Solidarity or UASA and for the duration of the wage settlement agreements applicable to Solidarity or UASA members, as the case may be ("the exception").

7. AMCU has, as a majority of its members, the employees employed by Lonmin Platinum falling within the Bargaining Unit. AMCU warrants that it has received a mandate and is authorised to enter into this agreement on behalf of its members.

8. As a result of the above, this agreement, in accordance with the provisions of section 23(1)(d)(iii) of the LRA is specifically extended to all employees of Lonmin Platinum falling within the Bargaining Unit who are not AMCU members, but with the exception as provided for in clause 6 above.

9. This agreement remains binding for the whole period of the agreement and, for the avoidance of doubt, binds the persons described in clause 6 above save for those covered by the exception, but includes every employee who was a member of AMCU at the date of conclusion of this agreement , or who becomes a member of AMCU after the agreement has become binding, whether or not that person continues to be a member of AMCU for the duration of this agreement and every person described in rclause 8 above and every person who becomes employed within the bargaining unit during the period of this agreement for as long as such person still falls within the bargaining unit.

10. This agreement applies in respect of the Lonmin Platinum Marikana operations only as described in the Recognition Agreement.

11. This agreement replaces any other agreement in existence between the Parties that addresses any similar issue or issues contained herein.

12. On 23 June 2014, AMCU shall announce that the dispute has been resolved and that the strike is at an end. It shall publicly call upon the striking employees to return to work from the morning shift of 25 June 2014. Striking employees shall be afforded a period until 30 June 2014 to return for work whereafter those not reporting for work will be dealt with in terms of the absent from work rules.

13. The "no work, no pay" rule applies in respect of the duration of the strike.

D INTERPRETATION

14. In this agreement, unless the context clearly indicates a contrary intention:

14.1 The head notes are for reference purposes only and shall not affect the interpretation of any part hereof.

14.2 The singular includes the plural and vice versa.

14.3 A reference to one gender includes the other gender.

14.4 A reference to a firm or body corporate includes a natural person and vice versa.

14.5 Words and expressions defined in any clause shall, unless the application of any such word or expression is specifically limited to that clause, bear the meaning assigned to such word or expression throughout this Agreement.

14.6 Unless otherwise provided, defined terms appearing in this Agreement in title case shall be given their meaning as defined, while the same terms appearing in lower case shall be interpreted in accordance with their plain English meaning.

14.7 A reference to any statutory enactment shall be construed as a reference to that enactment as at the Signature Date and as amended or substit uted from time to time.

14.8 Unless specifically otherwise provided, any number of days prescribed shall be determined by excluding the first and including the last day or, where the last day falls on a day that is not a business day, the next succeeding business day.

14.9 If the due date for performance of any obligation in terms of this Agreement is a day which is not a business day then (unless otherwise stipulated) the due date for performance of the relevant obligation shall be the immediately preceding business day.

14.10 Where figures are referred to in numerals and in words, and there is any conflict between the two, the words shall prevail, unless the context indicates a contrary intention.

14.11 The rule of construction that this Agreement shall be interpreted against the Party responsible for the drafting of this Agreement, shall not apply.

14.12 Any reference in this Agreement to "this Agreement" or any other agreement or document shall be construed as a reference to this Agreement or, as the case may be, such other agreement or document, as amended, varied, novated or supplemented from time to time.

14.13 The schedules and annexures shall be initialled by the parties for the purposes of identification and form part of this agreement as if specifically included herein.

E DEFINITIONS

15. In this Agreement, unless the context indicates a contrary intention, the following words and expressions bear the meanings assigned to them and cognate expressions bear corresponding meanings -

15.1 "Agreement" shall mean this agreement, including any annexures thereto;

15.2 "Bargaining Unit" shall mean Bargaining Unit as described in the

Recognition Agreement between Lonmin Platinum and AMCU dated 14 August 2013;

15.3 "the Recognition Agreement" shall mean the Recognition Agreement entered

into between Lonmin Platinum and AMCU dated 14 August 2013;

15.4 "Strike" and "lock out" shall mean a strike or a lock out, as defined in the LRA;

15.5 "LRA" shall mean the Labour Relations Act, 66 of 1995 as amended;

15.6 "Marikana Operations" shall mean Marikana Operations as described

in the Recognition Agreement.

F EXPLANATORY NOTES

16. The holiday leave allowance is accrued and paid annually when the employee, to whom holiday leave allowance is applicable, proceeds on annual leave in accordance with the provisions of the Basic Conditions of Employment Act, 75 of 1997, as amended ("BCEA").

17. An attendance allowance is paid monthly but only if the employee, to whom the attendance allowance is applicable,has worked all the requi n\ for that month.

18. Shift allowances vary and are paid to the employee, to whom the shift allowance is applicable, when he/she works on a particular night shift, afternoon shift or three shift rotational shift cycle.

19. Living out allowance does not apply to those employees who reside in Lonmin Platinum's hostel complexes or who reside, without the consent of Lonmin Platinum, on property belonging to and/or administered by Lonmin Platinum.

G DURATION

20. Notwithstanding the signature date, this agreement shall apply with effect from 1 October 2013 and shall remain in force and effect until30 June 2016.

H WAGES / SALARY INCREASES

21. The wages/salaries of employees , within the Bargaining Unit, on the basic wage/salary structure, and the total package salaries of employees on a total package structure and/or total cost to company, will be increased as set out herein and annexure A 1 and A2 hereto for the period effective 1 October 2013 to 30 June 2016 as follows:

1 October 2013 Basic Wage /Salary Increase

21.1 Subject to the Back Pay provisions in clause 22 below, the increase for Paterson A and B band employees will be R1000,00 (one thousand rand) on monthly basic wages and guaranteed packages for employees on Total Cost to Company contracts effective 1 October 2013.

21.2 The increase in respect of Paterson C1 to C4 band will be 8% effective 1 October 2013.

21.3 The RDO allowance will increase effective 1 October 2013 by 6%.

21.4 In respect of Category 4 to 9, the basic wages (as at 1 October 2013) ("new pensionable basic") will be used as pensionable basic and also be used for the purpose of calculating pension fund contributions, overtime, holiday leave, attendance allowance, shift allowance and encashment of accumulated leave (if applicable), etc. up to and including 30 June 2014. The basis of calculation will be the existing formulae. ('11.J

1 July 2014 Basic Wage / Salary Increase

21.6 The increase for Paterson A and B band employees will be R1000,00 (one thousand rand) on monthly basic wages and guaranteed packages for employees on Total Cost to Company contracts effective 1 July 2014.

21.7 The increase in respect of Paterson C1 to C4 band will be 7,5% on 1 July 2014.

21.8 The RDO allowance as at 30 June 2014 will be increased on 1 July 2014 by 6%.

21.9 In respect of Category 4 to 9, the basic wage (as at 30 June 2014) plus 6% thereon will be used from 1 July 2014 up to 30 June 2015 as pensionable basic ("pensionable basic") and for the purpose of calculating pension fund contributions, overtime, holiday leave, attendance allowance, shift allowance and encashment of accumulated leave (if applicable), etc. The basis of calculation will be the existing formulae.

1 July 2015 Basic Wage / Salary Increase

21.11 The increase for Paterson A and B band employees will be R1000,00 (one thousand rand) on basic monthly wages and guaranteed packages for employees on Total Cost to Company contracts effective 1 July 2015.

21.12 The increase in respect of Paterson C1 to C4 band will be 7,5% on 1 July 2015.

21.13 The RDO allowance as at 30 June 2015 will increase on 1 July 2015 in line with the Consumer Price Index as at 31 March 2015.

21.14 In respect of Category 4 to 9, the pensionable basic (as at 30 June 2015) plus the Consumer Price Index as at 31 March 2015 will be used from 1 July 2015 as pensionable basic and for the purpose of calculating pension fund contributions, overtime, holiday leave, attendance allowance, shift allowance and encashment of accumulated leave (if applicable) , etc. The basis of calculation will be the existing formulae.

In each of the years defined above, the increase for Paterson A and B band employees will be the higher of R1 ,000 or the % increase applicable to the Paterson C band employees in that specific year.

BACK PAY

22. Back pay will be paid for the period of 1 October 2013 to 22 January 2014. This will be paid within 7 working days of returning to work. Back pay may be through cash vouchers. Back pay will not be applicable to benefits, overtime and allowances.

J LIVING OUT ALLOWANCE

23. All living out allowances will increase by R50,00 a month and the minimum will be R2000 ,00 (two thousand rand) per month with effect from 1 October 2013. Thereafter all living out allowances will not be increase but will remain the same for the duration of this agreement.

K MEDICAL AID CONTRIBUTIONS

24. The annual increases in respect of medical aid contributions are determined and approved by the Board of Trustees. In respect of the calendar year 2014, the increase is 7.191% and this has already been implemented. In respect of the calendar years 2015 and 2016, the annual increases will be in line with the medical aid inflation as determined by the Medical Aid Board of Trustees ("Medical aid Inflation"). The increases apply in respect of each calendar year effective the first of January of each year.

L PROCESS ISSUES

25. Lonmin Platinum and AMCU will establish jo int Task Teams to address the following process issues. The parties will endeavour to meet within 30 (thirty) days of signing this agreement to prioritise and agree the terms of reference of the task teams.

26. The Task Teams will be in respect of the following issues:

• Shareholding / Profit Sharing / ESOP

• Productivity Improvement

• Housing / Living Conditions

• Skills Development (Life Skills Centre)

• Medical Separation Agreement

• Severance Policy

• Retirement and Funeral Cover

• Micro-lending and Garnishees

• Job Grading Review

• Sub-contracti ng, Labour hire

27. The parties acknowledge that Lonmin Platinum is in the process of rationalising Assisted Rock Drill Operators to become Single Rock Drill Operators and this process will be completed within nine (9) months of signing this agreement. Rock Drill Assistants will be absorbed into Rock Drill Operator positions as and when vacancies become available.

28. Implementation of any other recommendation by any of the task teams and having a financial impact, if accepted and/or accepted with amendments , will be considered for implementation during the next round of negotiations commencing after 1 July 2016.

M PRODUCTIVITY

29. The parties agree that productivity levels must be increased to beat cost inflation and industry level standards in order to ensure that Lonmin Platinum remains sustainable and viable as a business for the benefit of all stakeholders. The parties commit to achieve efficiency improvements and achieve the productivity, safety and cost improvements as outlined in annexure B.

Lonmin Platinum will measure efficiency improvements and the productivity targets which must be met on a sustainable basis for the duration of this agreement in order to ensure sustainability and growth of the Marikana operations. Productivity, safety and cost improvements outlined in annexure B may be changed by Lonmin Platinum during the term of this agreement in consultation with AMCU.

30. Lonmin Platinum will consult with AMCU in respect of the establishment of efficiency targets, measurements and objectives and the steps required to achieve them by -

30.1 dealing in a constructive manner with recommendations regarding shafts or sections of shafts that are unprofitable, inefficient or unsustainable. This is to be achieved by consideration of the following possibilities, such as placing unprofitable shafts or sections on care and maintenance or embarking on outsourcing of services , where appropriate, with suitable accredited broad-based BEE entities taking into consideration community and employee involvement;

30.2 enhancing the training of employees progressively, including supervisors and managers, to manage and exercise more effective supervision, and providing for all employees to attain better and more productive skills. This will include providing supervisors and employees with skills to resolve disputes more effectively and to manage industrial relations and employee relations in a positive manner to the benefit of all Lonmin stakeholders.

N DISMISSED ESSENTIAL SERVICES

31. The dismissed essential services employees will be reinstated subject to AMCU and the dismissed employees withdrawing their dispute referral to the CCMA. AMCU agrees to immediately withdraw that referral to the CCMA unconditionally .

32. The dismissed employees will not be entitled to be paid for the duration of the dismissal.

33. AMCU undertakes to ensure that essential services employees do not participate in any industrial action whatsoever in the future and to remind its members of the consequences of participating in industrial action and of being in breach of material·undertakings concerning them.

0 DEBT HOLIDAY

34. Lonmin Platinum will grant a two months debt holiday to employees in relation to any amount that is due and payable by the employees to Lonmin Platinum.

P PEACE OBLIGATION

35. The parties agree that no party, and in the case of AMCU, none of its members, and employees bound by this agreement shall be entitled to embark upon any industrial action whatsoever in respect of wages , issues referred to process or task teams, and/or any other conditions of employment or benefits in addition to those that have been agreed upon by the parties. It is further agreed that any such industrial action will amount to a contravention of section 65(1) (a) and (b) of the LRA.

36. This agreement is entered into in full and final settlement of all demands and proposals and counter proposals made by the parties during the negotiation processes and mediation processes that led to this agreement being entered into.

37. Neither AMCU, its members nor employees bound by this agreement shall call, encourage, instigate or participate in any strike or other industrial action in respect of any matter or issue -

37.1 regulated or provided for in this agreement;

37.2 that formed the subject of proposals or counter-proposals made during the course of the negotiations and mediation processes that lead to this agreement being entered into; or

37.3 that has been referred to a task team, or is the subject of consultation in terms of this agreement.

38. Neither AMCU, its members nor employees bound by this agreement shall seek to enter into further negotiations, or make further and/or new demands or proposals, relating to wages, terms and conditions of employment that should and/or will apply during the period of application of this agreement, and shall not call, instigate, encourage or participate in any strike or other industrial action. This shall also apply to any other demands or proposals that could increase employment costs during the period of application of this agreement.

39. AMCU, its members and employees bound by this agreement shall not seek and/or be entitled to declare a dispute and/or call for, encourage or participate in any strike or other industrial action during the term of this agreement in connection with and/or arising from wages and terms and conditions of employment which are sought to be applied on or after 30 June 2016.

40. This agreement constitutes the whole agreement between the parties about the subject matter hereof and no agreement , representations or warranties between the parties other than those set out herein are binding on the parties.

41. AMCU shall take all reasonable steps necessary to ensure compliance with the provisions of this clause.

42. The parties undertake at all times to perform all things necessary to implement and maintain the terms, conditions and operation of this Agreement.

Q DISPUTE RESOLUTION

43. Disputes about the interpretation or application or breach of this agreement shall be dealt with in terms of the procedures set out in this clause.

44. The dispute shall first be referred in writing by AMCU to Lonmin Platinum or vice versa.

45. The referring party shall clearly articulate the date of the dispute and the nature of the dispute, the detailed facts upon which reliance is made, the identification of the affected employees, the desired solution or outcome, proposals on how the dispute could be resolved and all information necessary to allow the other party to properly consider the dispute.

46. To the extent that the dispute is not urgent, the parties shall, within fourteen (14) days of such referral, consider the dispute and make every reasonable effort to resolve the matter. Such efforts shall include at least two meetings between the Parties. To the extent that the dispute is urgent, the parties shall to the extent possible consider the dispute within forty eight (48) hours and make all reasonable efforts to resolve the dispute.

47. Should the procedure mentioned in clauses 45 above fail to resolve the dispute, the dispute may be referred by either party to the Commission for Conciliation Mediation and Arbitration, in terms of the LRA. Nothing in this agreement shall be construed as to preclude any party from approaching the Labour Court for an interdict or similar urgent relief.

48. . Notwithstanding the provisions above, neither party shall be prevented from urgently seeking appropriate interim relief from the Labour Court.

R OTHER EXISTING CONTRACTUAL OBLIGATIONS TO BE MAINTAINED

49. Save as specifically provided for in this agreement and for the duration provided for herein, this agreement does not vary or alter other contractual obligations or terms and conditions of employment between the parties.

S VARIATIONS NOT EFFECTIVE UNLESS IN WRITING

50. No variation, modification or waiver of any provision of this agreement, or consent to any departure therefrom , shall in any way be of any force or effect unless confirmed in writing and signed by the parties and then such variation, modification,·waiver or consent shall be effective only in the specific instance and for the purpose and to the extent for which it was made or given.

T ENTIRE AGREEMENT

51. This agreement comprises the entire agreement between the parties about the subject matter hereof, including but not limited to all demands and requests made by AMCU in relation to wages, remuneration, terms and conditions of employment. No agreement, representations or warranties between the Parties other than those set out herein are binding on the Parties.

U RIGHTS IN LAW

52. Nothing in this agreement will prevent any party from exercising its rights in law in relation to any breach of this agreement.

THIS DONE and SIGNED at MELROSE ARCH on this the 24th day of June

2014, in the presence of the undersigned witnesses...

ANNEXURE A (1)

ANNEXURE A (2)

ANNEXURE B

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Comments

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 responses to this article

How many foreign workers at MARIKANA?
Surely they can find South Africans to do the work?

by . on June 27 2014, 12:45
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Business jargon and good news
Irvin Jim acknowledged the other day that contract language was, in top level meetings, jus' "greek" to him. Is this a universal handicap among our union leadership or should I break-out into loud applause that this 10% increase in productivity levels is . .more

by James Mashele on June 28 2014, 19:12
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