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- Harmony Gold has entered into a five-year wage deal with unions, a first for the company.
- The deal is expected to bring stability and secures about a 6% increase per annum for the company's employees.
- In 2022, Anglo Platinum's five-year wage deal saw similar agreements signed by competitors.
- For more financial news, go to the News24 Business front page.
Harmony Gold and unions on Thursday penned a historic wage deal for the gold industry, which locks in five years of stability for the group's operations.
The agreement will see varying increases for different categories of workers, but it ultimately results in an increase of approximately 6% per annum over the five years. It also comes at a time when rand gold prices are at historic highs of R42 700 per ounce.
The JSE-listed miner struck the deal with a coalition comprising the National Union of Mineworkers (NUM), United Association of South Africa (UASA) and Solidarity. The Association of Mineworkers and Construction Union (AMCU), and the National Union of Metalworkers of South Africa (Numsa) are also party to the agreement, which spans from 1 July 2024 to 30 June 2029.
The deal also covers increases in the basic housing and living out allowances, and a number of non-wage related and process issues.
Harmony is the first gold miner to secure a wage agreement in this year's round of talks, and the deal may help set the tone for other negotiations.
These include Sibanye-Stillwater, which has seen previous wage negotiations deteriorate into protracted and sometimes violent protest action around its operations.
In 2022, Anglo American Platinum was the first to sign a five-year wage deal with unions and has led to peers signing similar agreements.
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Harmony CEO Peter Steenkamp said in a statement that the five-year wage agreement with all labour unions was a first for the 73-year-old company.
"This is testimony to the strength of our labour relations and ensures stability and continued certainty on our fixed labour costs for the next five years," he said.
Steenkamp noted the agreement has been reached three months before the existing agreement's expiry.
"It is fair and balanced, considering the impact that increases in the cost of living are likely to have on employees over the next five years," he said.
"We are pleased that the wage negotiations were carried out in good faith and commend all parties for demonstrating good leadership by engaging constructively."
Speaking at the signing ceremony, Numsa general secretary Irvin Jim said the deal would ensure workers will get increases every year of no less than R1 000. "It's a significant achievement," he said.
