The Chamber of Mines and the National Union of Mineworkers (NUM) this week concluded their first round of negotiations and agreed to meet again on June 10. The negotiations involved the gold and coal mining members of the Chamber of Mines.
The mining industry has on several occasions indicated its commitment to improve the socioeconomic conditions of employees. This, however, must be done in a responsible manner.
The benefits demanded by workers must be seen as part of a programme to spread these over a period of time in order not to threaten the long-term sustainability of the mining industry.
That way future generations can still benefit from this resource. The mining industry has consequently made offers relating to the following socioeconomic issues: improvement in employees' living standards, in particular relating to single accommodation; healthcare for employees and dependants; the employment of women in mining; and care for disabled workers.
However, the industry was unable to meet all of the NUM's demands and the progress on these demands can be described as mixed. There is always a need in these processes for a willingness on both sides to reach out instead of digging heels on originally mandated demands.
The coal mining industry, being highly mechanised with a relatively small labour force, made more progress in meeting some of the NUM's demands.
It consequently made a wage offer of 7 percent for the first year and 5 percent for the second year of the proposed two-year agreement, and the achievement of a minimum wage of R2 000 for all workers over the two-year period of the agreement.
The gold mining industry is highly labour intensive and has a large labour component residing in rural areas or in neighbouring countries.
With labour costs comprising 55 percent of total costs, the gold mining industry needs to approach increases in labour costs with great circumspection.
While unreservedly committed to improving the socioeconomic conditions of employees, the industry will inevitably require a reasonable period of time to meet the NUM's expectations.
The gold mining industry was unable to make a wage offer until there was more clarity on the cost implications of the non-wage demands and the extent to which the union was willing to entertain reasonable offers in this regard.
The industry is committed to ensuring that we strengthen our partnership to build a competitive mining sector, contributing towards a new South Africa.
Dr Frans Barker
Chief Negotiator
Chamber of Mines of SA