Pan African Resources’ Barberton Mines has successfully concluded a three-year wage agreement with the National Union of Mineworkers (NUM) and a five-year wage agreement with the United Association of South Africa (UASA).

Both unions represent most employees at Barberton Mines. The NUM agreement provides for an average annual wage increase of approximately 5.6%, compound annually, for the bargaining unit over a three-year term, effective from 1 July 2021 and terminating on 30 June 2024.

The UASA agreement, effective from 1 July 2021 and terminating on 30 June 2026, provides for the following:

  • Year 1 and 2 – an average annual increase of 5.0%
  • Year 3 – an average annual increase of 5.0% or the annual South African consumer price inflation rate (CPI), whichever is higher, capped at 6.0%
  • Year 4 and 5 – an average annual increase of 5.0% or CPI, whichever is higher, capped at 6%. The parties have, however, agreed to re-negotiate these increases in the event of CPI being lower than 4% or higher than 7.5%, for each of these two years.

Assuming, a CPI rate of 5.0% for the initial three-year period, the above-mentioned wage increases will result in an average annual increase of approximately 5.4%, compound annually, for these bargaining units over the period.

“We are pleased with the outcome of the negotiations and commend the constructive spirit in which they were conducted,” commented Cobus Loots Pan African CEO.

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