Johannesburg - The Association of Mineworkers and Construction Union (Amcu) said gold producing companies need to improve their pay offers or the labour group will leave the negotiations.
“Tomorrow if we’re not happy with the offer, we will declare a deadlock” in the talks, Manzini Zungu, a spokesperson for Amcu, which represents 30% of gold employees, said by phone.
Companies including AngloGold Ashanti [JSE:ANG] have proposed a five-year deal with annual increases of up to 13%, plus a share of earnings and improved job security and living conditions. The Amcu wants wages more than doubled for the lowest-paid employees. The SA inflation rate was 4.6% in May.
While keen to avoid a repeat of last year’s five-month platinum strike, the South African mining industry’s longest, the producers’ ability to raise salaries is limited by spiralling costs that have left much of the industry unprofitable.
The National Union of Mineworkers, which speaks for 52% of employees in the talks, rejected the first pay deal offered on Monday. The Chamber of Mines, representing producers, will respond to the unions Wednesday, Livhuwani Mammburu, a spokesperson for the union, said in a text message.
“If there’s no collective agreement stating at what point a dispute can be declared,” it can happen whenever the talks deadlock, Lusanda Myoli, a spokesperson for the Commission for Conciliation, Mediation and Arbitration, said in an e-mailed response to questions.