Reuters reports that the National Union of Mineworkers (NUM) signed a three-year wage deal with AngloGold Ashanti on Friday, inking the same agreement that other unions reached with the gold producer earlier in the week.
The three other unions were the Association of Mineworkers and Construction Union (Amcu), Solidarity and Uasa. The agreement will mean an effective pay hike of over 12% for entry-level underground workers in the first year, over double the inflation rate, an industry trend in recent years that has hit margins and has made many shafts unprofitable. Gold producers have argued that above-inflation wage hikes have added to the cost burden in the bullion industry, which has also been hit by depressed prices, labour unrest and declining grades at depths of up to 4 kms. Harmony Gold, Sibanye-Stillwater and smaller producer Village Main Reef have yet to sign wage agreements with the unions.
- This short report by Ed Stoddard is at Moneyweb
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