SA Unions Declare a Dispute over Gold Mine Wage Negotiations

Wage talks in South Africa seem to call for constant muscle flexing. After a strike at De Beers’ diamond mines was averted this week following last-minute talks that resolved a deadlock over wage negotiations, unions representing gold mine workers declared a dispute with the Chamber of Mines Wednesday.

The three trade unions negotiating with the Chamber of Mines on behalf of gold mining workers, the NUM, Solidarity and UASA, today declared the dispute after the Chamber did not raise its wage offer more than 0.5 percent to 7.75 percent.

According to Dr Elize Strydom, chief negotiator for the Chamber of Mines, the dispute is just a step on the road to finalizing an agreement. “Despite the unions’ declaration of a dispute, I believe that good progress was made today.”

Dr Strydom said that, in addition to the new wage offer, companies also offered the following:

• A new basic wage for rock drillers of R 4000 ($562)  by July 2008;
• An increase in the living out allowance from R 1,000 ($140) per month to R 1,200 ($168) by September 2008;
• Agreement on a mechanism to ensure that the terms of service of contractors are in line with generally acceptable conditions of service;
• A minimum underground wage of R3,000 ($421) per month to be achieved by December 2007; and
• An increase of 8.75% in the basic wages for certain categories of artisans in short supply. 

The next step is the appointment of a mediator between the sides.