Harmony Gold Mining Company Limited has concluded a three-year wage agreement in respect of wages and conditions of service for the period July 1, 2021 to June 30, 2024. The wage agreement was agreed with AMCU, the Coalition (comprising the NUM, UASA and Solidarity) and NUMSA.
Harmony CEO, Peter Steenkamp, says: “This historic wage agreement reflects the strong partnership between Harmony and organised labour, demonstrating our commitment towards our long-term sustainability and our people. We would like to thank everyone involved for engaging constructively and keeping everyone’s best interests at heart.”
The agreement allows for the following wage increases:
- Category 4 to 8 employees will receive a wage increase of R1 000 for each year of the wage agreement. This translates to an average increase of 8,4% for employees across these categories
- Miners, artisans and officials will receive a wage increase of 6% of their basic wage for each year of the agreement
- The total average wage increase negotiated is 7,8% in year 1, 7,4% in year 2 and 7% in year 3
- 98% of Harmony employees are part of the bargaining unit covered by this wage agreement
In addition to the basic wage increases mentioned above, the parties have agreed to the following benefits:
- As part of Harmony’s drive to promote home ownership, a housing allowance will be introduced for the benefit of employees who choose to purchase a residence or who have already entered into bond agreements. The housing allowance will be R2 750 in year 1 and increase incrementally each year up to a maximum value of R3 240 in year 3.
- Employees not eligible for the housing allowance will receive a living-out allowance of R2 500 in year 1, which will increase by R100 in year 2 and in year 3 respectively. All employees will be eligible for either a housing allowance or a living-out allowance, but not both.
- A number of non-wage related and process issues have been agreed to, including: maternity and paternal leave; medical incapacity and medical aid benefits.
The wage agreement was reached outside the auspices of the Mineral Council’s central bargaining forum and was marked by way of an in-person signing ceremony to allow all parties to participate in and witness the signing of the agreement. This ceremony took place at the Birchwood Conference Centre in Boksburg. All the necessary COVID-19 health and safety protocols were followed.