Sibanye-Stillwater has successfully negotiated a wage agreement linked to the consumer price index (CPI), which the company deems manageable given the current economic landscape.
Following a recent mass meeting of union members, the National Union of Mineworkers (NUM) is poised to sign off on the agreement that will see workers in categories 4-8 receive an increase of R900, together with a 5.5% rise for miners, artisans, and officials.
During an interview with Business Report yesterday, Sibanye-Stillwater spokesperson James Wellsted expressed optimism regarding the wage talks, describing the agreement as a commendable outcome that provides a fair yet affordable increase.
“This wage agreement would be positive for our SA gold operations, securing a fair, but affordable increase which is appropriate for the current operating context,” Wellsted stated.
The negotiating process, however, has been fraught with challenges. Disputes emerged earlier this month, necessitating prolonged discussions.
“There was a dispute declared which led to further engagement last Friday,” Wellsted detailed, referring to contentious talks that culminated in a decisive meeting at the Driefontein stadium on Wednesday.
It was there that union representatives received a clear mandate from workers to accept Sibanye-Stillwater’s revised offer.
Sibanye-Stillwater is expected to convene again with union leaders today to garner further feedback from members, with hopes of finalising the wage deal.
The recent agreement comes on the heels of Sibanye-Stillwater reporting robust earnings, with a 9% quarter-on-quarter increase in earnings before interest, tax, depreciation, and amortization (Ebitda) to R3.3 billion for the quarter ending September.
This growth was significantly boosted by its gold operations, where adjusted Ebitda soared by 292% to R1.35bn.
In spite of a 12% decline in bullion production from the same quarter last year, the strength of the rand gold price—up by 24%—has significantly alleviated the financial pressures on the mining company.
Yet, the all-in-sustaining costs for the South African gold operations, excluding DRDGOLD, stood at R1 414 450 per kilogram, marking a 9% rise compared to the previous year due to lower production levels and a 17% reduction in gold sold.
The agreement reached between Sibanye-Stillwater and the NUM heralds a hopeful turn in an industry often characterized by protracted strikes and labour disputes, as it reflects a collaborative approach between the company and its employees at a time when the sector grapples with fluctuating commodity prices and operational challenges.
BUSINESS REPORT