Wage discussions continue at Northam’s Zondereinde division

Johannesburg, Monday 28 October 2013. The management of the Zondereinde division of Northam confirms that the company and the National Union of Mineworkers (NUM) continued their discussions with regard to the wage negotiations for the 2014 financial year on Friday, 25 October 2013, under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA).

The NUM applied for a certificate of non-resolution, which was issued by the CCMA. The CCMA also recommended that the parties engage in further facilitated talks, to be held on Tuesday 29 October and Wednesday 30 October 2013.

The company has offered a two-year settlement incorporating wage increases ranging from 6% to 7.5% for the first year, and between 5.5% and 7% for year 2, or CPI +1%, whichever is the higher. These distinctions are in line with the NUM demands that core employees be remunerated at a higher level than non-core employees.

The NUM has rejected this offer demanding among other things the following:

  • No multi-year wage deal
  • Distinction between core (production employees) and non-core employees
  • The demand for non-core employees is an increase of R2 000 on basic wages (equivalent to 22% - 40% at the lowest levels)
  • The demand for core employees is an increase of R2 100 on basic wages (equivalent to 23% - 43% at the lowest level)
  • The living out allowance to be increased by 69% from R2 200 to R3 718 monthly.

Combined the NUM demands equate to an average increase of 61%.

Given Zondereinde’s narrow cash operating margin after sustaining capital, general manager Danny Gonsalves has noted that he is encouraged by the agreement between the parties to continue discussions this week.

28 October 2013

Issued by
Russell & Associates
Tel +27 11 880 3924