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Pan African strikes wage deals with South African unions
12th Aug 2021 11:45
(Sharecast News) - Pan African Resources announced on Thursday that Barberton Mines has successfully concluded a three-year wage agreement with the National Union of Mineworkers, and a five-year wage agreement with the United Association of South Africa.
The AIM-traded firm said the NUM and the UASA represent most of the employees at Barberton Mines.
It said the NUM agreement provides for an average annual wage increase of 5.6%, compounding annually, for the bargaining unit over a three-year term, effective from 1 July 2021 and terminating on 30 June 2024.
The UASA agreement, also effective from 1 July and terminating on 30 June 2026, provides for an average annual increase of 5% in the first two years, followed by an average annual increase of 5%, or the annual South African consumer price inflation rate, whichever is higher, capped at 6.0%, in the third year.
In the fourth and fifth year, it provides for the same as the third year, although the parties had agreed to renegotiate the increases if CPI was lower than 4% or higher than 7.5% for each of those two years.
Assuming a CPI rate of 5.0% for the initial three-year period, the wage increases would result in an average annual increase of around 5.4%, compound annually, for the two bargaining units over the period.
"We are pleased with the outcome of the negotiations and commend the constructive spirit in which they were conducted," said chief executive officer Cobus Loots.
At 1102 BST, shares in Pan African Resources were up 0.87% at 16.26p.
The AIM-traded firm said the NUM and the UASA represent most of the employees at Barberton Mines.
It said the NUM agreement provides for an average annual wage increase of 5.6%, compounding annually, for the bargaining unit over a three-year term, effective from 1 July 2021 and terminating on 30 June 2024.
The UASA agreement, also effective from 1 July and terminating on 30 June 2026, provides for an average annual increase of 5% in the first two years, followed by an average annual increase of 5%, or the annual South African consumer price inflation rate, whichever is higher, capped at 6.0%, in the third year.
In the fourth and fifth year, it provides for the same as the third year, although the parties had agreed to renegotiate the increases if CPI was lower than 4% or higher than 7.5% for each of those two years.
Assuming a CPI rate of 5.0% for the initial three-year period, the wage increases would result in an average annual increase of around 5.4%, compound annually, for the two bargaining units over the period.
"We are pleased with the outcome of the negotiations and commend the constructive spirit in which they were conducted," said chief executive officer Cobus Loots.
At 1102 BST, shares in Pan African Resources were up 0.87% at 16.26p.