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Home Archive of News Latest News Wage negotiations in the mining sector stall

Wage negotiations in the mining sector stall

At the end of last month, we reported that the Association of Mineworkers and Construction Union (Amcu) wants employers in the gold-producing sector to “more than double” the wages earned by entry-level workers. Recently, Fin24 reported that the South African Chamber of Mines has declared a dispute with Amcu. It is predicted that this latest move will cause wage talks for the entire sector before the CCMA.

"Amcu has rejected the gold producers' revised offer of a 5% increase in wages and benefits. The producers have indicated that they cannot accede to Amcu's and Amcu has not moved at all in respect of its demands," said the chamber in a statement.

Bullion producers are offering a wage increase of 5%, slightly below South Africa's 6% inflation rate and well short of the 60% to 100% pay hike demanded by workers.

The news service reported that these wage talks have been labelled as some of the most difficult in South Africa since 1994. This is because of increased union militancy, soaring costs and falling gold prices.