Village Main Reef concludes wage agreement with unions

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Mining and resources investment company, Village Main Reef, has concluded a two-year wage agreement with the representatives of three unions at its gold mining operations, the Chamber of Mines said on Tuesday.

“Village Main Reef’s approach is focused on increases to basic wages because the company’s Tau Lekoa mine has a short life span,” said Dr Elize Strydom. “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 Strydom.

In terms of the two-year agreement, underground workers would received an increases of R1,000 and surface workers R800 for Category 4 to 8 employees. Miners, artisan and officials would receive an increases ranging between 5.5 percent and 6.5 percent. The agreement was concluded with the National Union of Mineworkers (NUM), Solidarity and the United Association of South Africa (Uasa) . The Association of Mineworkers and Construction (Amcu) is not represented at Village Main Reef.

Dr Strydom said wage negotiations in respect of the AngloGold Ashanti, Evander Gold Mines, Harmony and Sibanye Gold were continuing. “The bilateral meetings between the companies and unions have been concluded and a further collective meeting will be held later this week,” she said.

The union said in addition to the wage increase, workers would receive R110 increase for the living out allowance in 2015 and a R116 increase in July 2016. The increases to basic wages would see an increase of 5.5 percent to the meal allowance for two years, and an increase of 5.5 percent to the operator allowance for both rock drill operators and water jet operators for the period of the agreement. The increases would also see a 6.5 percent increase for all employees in the other bargaining units for July 2015 and 5.5 percent in July 2016.

“The unions and the management agreed that should any increases or improvements to conditions of employment and all other benefits negotiated at the Chamber through the centralised process exceed the increases and improvements contained in this agreement, such increases and improvements will be matched subject to the table below. If the chamber agreement is lower than this agreement this agreement will remain,” the union said.

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