AngloGold Ashanti has reached a wage deal for three years with the majority of its South African employees.
The company’s offer was accepted by the National Union of Mineworkers (NUM), Solidarity and the United Association of South Africa (UASA).
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According to AngloGold Ashanti, the unions consist of the majority of its workforce in South Africa at around 59%, with non-unionised employees increasing this to 66%.
The agreed hike would be extended to all employees, under South Africa’s Labour Relations Act.
AngloGold Ashanti chief operating officer South Africa Chris Sheppard said: "We’re pleased to have reached this agreement after several months of constructive negotiation.
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"The aim of the deal is to provide employees with a fair increase, whilst providing our operations with a degree of certainty at a very challenging time for the industry."
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By GlobalDataUnder the deal, category four to eight employees and B-lower officials will get an increase of R750 per month in first year.
In the second and third years, they will get R775 and R800 per month respectively.
Under the deal, miners, artisans and officials will get a 6% hike on standard rate of pay in the first year, and 6% or CPI in second and third years.
Harmony Gold has also reached a three-year wage agreement with the unions effective from July 1 with regard to their wages.
Harmony Gold CEO Graham Briggs said: "Although it has been a protracted negotiation process, I believe that we have achieved what we set out to do, reaching an agreement, which ensures that we remain sustainable as a company and as an industry, and at the same time limiting job losses."
Image: AngloGold Ashanti mining operations in South Africa. Photo: courtesy of AngloGold Ashanti.
