Anglo American Platinum Limited (“Anglo American Platinum” or the “Company”) announces that it has signed a three-year wage agreement (‘the Agreement’) with the Association of Mineworkers and Construction Union (“AMCU”), retrospectively effective from 1 July 2016. This agreement has been extended to the National Union of Mineworkers (“NUM”), the United Association of South Africa (“UASA” – The Union) and non-union affiliated employees in terms of section 23 of the Labour Relations Act 66 of 1995.
The Agreement includes:
- An annual increase of R1000 or 7% (whichever is greater), per month in basic pay for bargaining unit employees, for the three-year period, with increases ranging from 12.5% for the lowest paid employees to 7% for other bargaining unit employees in higher level bands;
- Living out allowances, housing rent subsidies and home ownership allowances increase by R120 per month for each year of the three year agreement;
- The employer’s medical aid contributions will increase by 6.4% from 1 January 2017 and on the first of January for each succeeding year of the wage agreement by 5.5%. The pensionable emolument bases for retirement and provident funds will increase by 6.4% from 1 July 2016 and 5.5% for the second and third year of the agreement;
- The Holiday Leave Allowance (HLA) (thirteenth cheque) increases by the same percent as the basic wage, however off a lower base. The base will increase over the three years to end at the same level as the basic monthly wage at the end of the agreement period. Other allowances have lower increases.>
The Agreement will result in an increase in the labour cost, with a cost-to-company increase of 6.71% in year 1, 6.56% in year two and 6.96% in year three, or 6.74% on average over the three year period.
Chris Griffith, CEO of Anglo American Platinum commented: “We are pleased to have reached an agreement following a constructive and collaborative negotiation process. The current economic environment continues to place significant pressure on platinum mining companies, as well as mineworkers, and we are glad to have achieved an agreement that is fair to our employees, benefiting the lowest paid workers the most with a 12.5% increase in basic pay, while still ensuring our business remains viable for the long-term.”