Trade union Solidarity today signed a two-year wage increase agreement for employees in the coal industry. This agreement was reached after ten rounds of negotiations, including several dispute rounds at the Commission for Conciliation, Mediation and Arbitration (CCMA).

Deon Reyneke, Head of the Energy Industry at Solidarity, said that among other things, the agreement was delayed by the Chamber of Mines’ low opening offer of 4,6%. “The Chamber and organised labour have had disparate goals from the outset of the negotiations. Solidarity continuously tried to reconcile the needs of its members with the sustainability of the coal industry. We believe that this agreement as succeeded in fulfilling this goal,” Reyneke said.

The agreement applies to miners, artisans and officials at various companies, and includes the following:

Wage increases

Year one:

·         Anglo American Coal SA – 7,5%
·         Exxaro Coal Mpumalanga – 7,5%
·         Kangra Coal – 7,0%
·         Msobo Coal – 5,5%
·         Glencore Operations SA– 7,5%

Year two:
·         Anglo American Coal SA – an increase equal to the inflation rate, or an increase of 7,5%, depending on which is the highest.
·         Exxaro Coal Mpumalanga – an increase equal to the inflation rate, or an increase of 7,5%, depending on which is the highest.
·         Glencore Operations SA – an increase equal to the inflation rate, or an increase of 7,5%, depending on which is the highest.
·         Kangra Coal – 7,0%
·         Msobo Coal – 5,5%

Retirement age

The said companies’ offer also includes an increase in the retirement age for all employees, from 60 to 63.

Issued by Solidarity