Gold companies table opening offers

FIVE gold companies negotiating increases in the sector this year have tabled opening offers of between 7.8% and 13% at entry level.

Mines also offered to implement profit sharing of between 3% and 5%, and guaranteed there would be no job losses except where operations fell below a 6% operating margin, Chamber of Mines chief negotiator Elize Strydom, said on Monday.

Speaking on the sidelines of the talks east of Johannesburg, Ms Strydom said companies had tabled different wage offers "underpinned by the concept of sustainability and by their financial models".

Producers AngloGold Ashanti, Sibanye Gold, Harmony Gold, Evander Gold Mines and Village Main Reef had hoped to move away from positional bargaining during the current wage negotiation round. The producers want to agree on an economic and social sustainability compact, based on agreed financial models.

The offers range from a 13% increase at AngloGold Ashanti — or R750 — to 7.8% at Harmony (R450). Sibanye is offering an 11.1% increase at entry level and, along with Harmony, is also offering a 5% profit share. AngloGold is offering a 3.5% profit share. Artisans would see increases of between 4% at Harmony and 6% at AngloGold Ashanti. Sibanye has offered 5%.

Companies were expected to deal with offers on wages, housing and medical aid, among other things, during bilateral meetings set to continue until Wednesday, Ms Strydom said.

Evander Gold and Village Main Reef however indicated they would prefer to table their offers at these meetings, she said.

The National Union of Mineworkers, the majority union, expressed disappointment on Monday. Parties remained "poles apart", NUM general-secretary David Sipunzi said.

Solidarity general-secretary Gideon du Plessis said the union was adopting a cautious approach to promises regarding profit sharing and restructuring. The union was disappointed one of its demands, a rise in the retirement age from 60 to 63, was not dealt with, he said.

The Association of Mineworkers and Construction Union (Amcu) declined any comment. The union would do so at a later stage, said Amcu general-secretary Jeff Mphahlele.

-Karl Gernetzky, BDlive