Jonathan Goldberg, chairman of Global Business Solutions, writes that a landmark collective bargaining agreement has been reached, signalling a new era for SA’s labour landscape.

JSE-listed gold producer Harmony Gold last week sealed a transformative five-year deal with five trade unions, namely the NUM, Amcu, Solidarity, Numsa and Uasa. This breakthrough pact, effective from 1 July 2024 to 30 June 2029, is said to promise stability amidst industry volatility and sets a precedent for constructive negotiations across sectors. “This agreement is a game-changer,” says Goldberg, who goes on to add: “A precedent has now been set for many other industries to follow. The agreement's provision for a 6% wage increase aligns with inflation projections, ensuring equitable growth for workers while safeguarding industry sustainability.” In his view, the automotive components and manufacturing sector exemplifies the potential ripple effect of this agreement. Emulating the Harmony Gold model can foster a more resilient and predictable business environment across various sectors. “The Harmony Gold agreement stands as a win-win-win scenario. Workers benefit from wage growth in line with inflation, preserving their standards of living. Harmony Gold gains predictability in labour costs, enhancing strategic planning. Meanwhile, trade unions secure a successful negotiation outcome that advances member interests,” Goldberg comments. He concludes that in essence, the Harmony Gold agreement underscores the efficacy of collective bargaining.

• Read Jonathan Goldberg’s full opinion piece in the above regard at Business Report

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