CCMA-facilitated talks deadlock after Sibanye and unions reject proposed offers

Attempts by the Commission for Conciliation, Mediation and Arbitration (CCMA) to bring an end to a protracted wage strike at Sibanye-Stillwater deadlocked after the employer accepted the dispute resolution body’s proposal while striking unions rejected it.

In a meeting that ran late into Monday night, the CCMA proposed a three-year wage deal that would have resulted in workers receiving pay hikes of R700, R1,000 and R900 over a three-year period, a one-off ex gratia payment of R3,000, and an annual 5% increase for artisans, miners and officials.

“This proposal was accepted by Sibanye management but rejected by workers because it’s an insult to our members,” Livhuwani Mammburu, spokesperson of the National Union of Mineworkers (NUM) told Business Day on Tuesday.

About 25,000 gold miners led by the Association of Mineworkers and Construction Union (Amcu) and NUM downed tools on March 9 demanding a pay increase of as much as 9.8% after rejecting Sibanye’s offer for an increase in basic wages of 7.8% for the first year. The Reserve Bank forecasts a headline inflation of 5.9% for 2022.

The two unions rejected the company’s revised offer of an R800 wage increase, a R50 increase in the living-out allowance and a 5% increase for miners, artisans and officials.

Sibanye, the world’s largest platinum group metals (PGMs) producer, has said the final settlement offer will translate into a 7.8% rise in basic wages in year one, 7.2% in year two and 6.8% in year three. It will increase the mining group’s wage bill by R1.67bn over the three years.

The two unions had been demanding a R1,000 increase, which amounts to a 9.8% rise in year one, 8.8% in year two and 8.2% in year three for entry-level workers, including surface and underground miners.

Mammburu said during the meeting, which ended at about 10pm on Monday, that the two unions tabled a revised offer for increases of R800, R1,000 and R900 over three years, a R3,000 one-off ex gratia payment, and a 5% increase for artisans, miners and officials, rising to 5.5% in the third year, which was rejected by Sibanye.

“This counter proposal was rejected last night [Monday]. We are in a deadlock. The parties will meet again today [Tuesday] under the section 150 process, but the unions will hold a brief caucus first to try to find a way forward,” Mammburu said.

The protracted industrial action has halted operations at Sibanye’s gold operations that make up a small portion of its portfolio, which is dominated by PGMs. It has also left striking workers R1bn out of pocket and prompted minerals & energy minister Gwede Mantashe to threaten to revoke the company’s mining licence.

Sibanye has said its gold operations will resume when the strike ends, workers report for work and operations are made safe. However, it has said it is “premature to attribute accurate numbers to production losses”, it has published production guidance of between 813,000oz and 873,000oz for 2022. It could lose at least 203,250oz if the strike goes on for three months.

Amcu’s five-month strike from November 2018 at Sibanye’s gold operations cost the company R1.6bn and 110,000oz in lost production of gold. Nine people died. Workers forfeited R1.5bn in pay during the strike, after which Amcu accepted terms that had been accepted by NUM, Solidarity and Uasa.

SA’s mining industry contributes about 9% to GDP and employs about 450,000 people directly.

mkentanel@businesslive.co.za