This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Miningmx writes that the negative aspect of Harmony Gold’s three-year wage deal signed with unions last Thursday is that it entrenches Harmony’s reputation as a high cost gold producer.
At a total increase of between 7% and 7.8% over the three years, the agreement is more expensive than the 6.5% average increase negotiated by Gold Fields and Pan African Resources’ 5.4% three-year wage settlement concluded earlier. “Although the agreement is in line with management expectations, above inflationary increases in 50% to 60% of the cash cost base contributes to its 99th percentile ranking on the global AISC (all-in sustaining cost) curve in FY22,” said RMB Morgan Stanley analysts in a report. But, Harmony spokesman Jared Coetzer said over a three year view the company was significantly improving its cost profile. He said the production replacement programme would maintain production and code in cheaper ounces as the group phased out the ageing mines. “Our guidance has gone up (in terms of AISC) but we are confident the catalysts will come through. There will be a reversal in the cost trend,” he stated. Moreover, none of the pyrotechnics of previous wage negotiations were exhibited and there wasn’t a single threat of strike action. Another positive is that with the wage agreement behind it, Harmony can knuckle down to a 2022 financial of elevated capital expenditure.
- Read the full original of the report in the above regard by David McKay at Miningmx
Get other news reports at the SA Labour News home page