UASA Media Release: 18 December 2024
Statement by Abigail Moyo, spokesperson of the trade union UASA:
For UASA and its members, wage negotiations reflect more than financial agreements—they represent pathways to secure sustainable livelihoods in a complex and ever-changing industry. In 2024 the mining industry has again proven its resilience, with significant wage agreements struck amidst economic challenges. Harmony Gold secured a five-year wage agreement with organised labour unions, including UASA, NUM, AMCU, Solidarity and NUMSA.
This agreement signified a significant success for UASA and other participating unions as it guarantees stable employment for members and preserves livelihoods well into the future. The unity demonstrated by all five unions in the negotiation process was a testament to the strength of collective bargaining and mutual goals.
The wage increase, set at 2% above the Consumer Price Index (CPI), was critical in securing this financial backing, instilling investor confidence in the company’s long-term viability. This stability is crucial as Harmony embarks on ambitious projects that promise to reshape South Africa’s mining landscape.
Harmony’s long-term strategy centres on three pivotal initiatives requiring substantial capital investment. These projects include:
- Mponeng Mine Deepening – This project will explore additional blocks of gold-bearing ore, potentially extending Mponeng’s lifespan by 15 years and solidifying its role as a leading contributor to South Africa’s mining sector.
- Moab Mine exploring the Zaiplaats Project – This initiative will unlock new gold blocks, extending Moab Mine’s life by 10-12 years.
- Mine Waste Solutions Mega Dam (Phase 2) – Aimed at environmental stabilisation, this facility will ensure tailings management and extend the project’s operational life by 20 years.
Challenges and resilience in Sibanye’s wages and employment negotiations
In contrast, Sibanye Gold and Platinum operations faced two rounds of Section 189 retrenchments over the past two years, affecting approximately 3,500 employees across both divisions, with 550 UASA members impacted. Despite these challenges, UASA’s proactive approach to recruitment and strategic redeployment of labour within Sibanye’s profitable shafts has helped mitigate job losses, resulting in a net growth in membership for the union.
These efforts underscored UASA’s commitment to protecting workers’ livelihoods amid industry volatility. Sibanye’s wage negotiations remained complex, with a proposed 5.5% increase for one year. While the one-year deal provides short-term relief, UASA and its members remain prepared to return to the negotiation table to safeguard their future interests.
Impact of diamond price crash on members
The mining industry’s volatility extends beyond gold and platinum, with the global diamond market experiencing a 30% price drop in 2024. This downturn has had profound implications for workers at several mines, including:
- Petra’s Koffiefontein Mine – Despite being placed on care and maintenance, no UASA members were affected during the retrenchment processes.
- Cullinan Mine – A Section 189 process for senior management had minimal impact on UASA members, as they signed a three-year wage deal with a CPI +1% increase to offer stability.
- EKAPA Mining – Responding to market pressures, EKAPA opted against layoffs by initiating “Project 2O,” aimed at cutting R20 million in costs. As part of this agreement, employees were temporarily placed under a 10% salary reduction plan, with deferred pay and bonuses banked for future reimbursement once market conditions improve. Following extensive negotiations, regular salaries were reinstated in November, providing much-needed relief for members during the festive season.
Economic outlook
The mining sector remains a cornerstone of South Africa’s economy, contributing significantly to the Gross Domestic Product (GDP) and employment. However, challenges such as fluctuating commodity prices, operational ageing and environmental sustainability remain. UASA Sector Manager, Johnny White, explained that growth opportunities lie in strategic expansions, resource exploration and innovative environmental projects like Harmony’s.
“As demonstrated in recent wage negotiations, stability and sustainable labour relations are pivotal in navigating these challenges and fostering long-term industry resilience,” said White. While the road ahead may hold further challenges, UASA remains committed to protecting its members’ interests and navigating complex industry dynamics with resilience and determination.
For further enquiries or to set up a personal interview, contact Abigail Moyo at 065 170 0162.