JSE-listed Anglo American Platinum (Amplats) has signed a five-year wage agreement with some of the biggest labour unions in South Africa.
The wage agreement, which will be implemented from July 1, will result in an average 6.6% increase in employees’ cost-to-company salary every year over the five-year period.
The three unions the National Union of Mineworkers, UASA and the Association of Mineworkers and Construction Union, together represent 90% of Amplats’ unionised employees.
“We believe this multi-year agreement will enable our business to remain sustainable through PGM (platinum group metal) price cycles, while also ensuring that our people are rewarded for their work as we seek to deliver enduring value for all our stakeholders across society,” said Amplats CEO, Natascha Viljoen.
South Africa’s producer inflation surged to a record high in April. Prices of final manufactured goods rose by 13.1%, from 11.9% in March, said Bloomberg News citing data from Statistics South Africa.
The company will keep working toward lifting the wages of the lowest-paid, Viljoen said. Amplats and the unions are flexible about renegotiating the agreement if South Africa’s inflation climbs above 7.5% or falls below 3%, she said.
“We are in a continuous process of looking after the lowest paid colleagues in our business,” Viljoen said. “There’s a recognition that as an industry, we need to do more in that category.”