RBPlat and NUM sign historic wage agreement
The agreement commences on 1 July 2014 and terminates on 30 June 2017.
The agreement makes provision for the parties to meet in May 2017, to review, align and extend the agreement by a further period of two years on pre-agreed terms. The purpose of the review will be to ensure that the agreed increases are in line with the consumer price index prevailing at that time and that RBPlat’s minimum wage remains in line with that of the platinum industry.
This agreement is unique and presents a total value proposition for all stakeholders, as it incorporates an Efficiency Improvement Model. This will assist the Company in achieving its long-term business objectives and enabling the company and employees to meet their performance targets. In recognition of the importance of housing and accommodation, the agreement includes the recently concluded RBPlat Employee Housing Scheme. The R2.8 billion scheme, which was announced in June 2014, will see 3 100 houses built for employees over a five-year period. Through this scheme, employees will be able to create personal wealth through the ownership of an asset that will appreciate over time and provide a safe and secure family environment that will support a family-oriented lifestyle. These improved living conditions will contribute positively towards an improved performance and safety culture in the workplace.
The RBPlat has as its vision shared interest of all stakeholders in its business, namely shareholders, employees, the government and the local mining communities in which it is located. Both NUM and RBPlat are committed and aligned to the country’s transformation agenda. As a result agreements between the parties are intended to foster long term and sustainable solutions.
The present Living Out Allowance (“LOA”) and Home Owners Allowance (“HOA”) will be gradually phased out as employees are allocated homes and will be applied instead as Housing Fund Contributions. Allowances that remain in place during the five-year period of the new wage agreement will be increased by 7% per annum for the first two years of the agreement and thereafter remain the same for the remaining three years.
This agreement is expected to increase the total labour cost-to-company by 9.1% on average, over 3 year period.
The increases will be effective from 1 July 2014 to 30 June 2017. Each year of the agreement, beginning 1 July 2014 until 30 June 2017, all employees within the A to D1 categories will receive increases on their basic pay, on a sliding scale as follows:
- Employees employed and utilised as Development or Stoping Machine Operators ( Rock Drill Operators) will receive 10.5%, 10.5% and 9.5%, each year;
- A1 to B7 Band employees (excluding Rock Drill Operators) will receive 10%, 10% and 9% each year; and
- Employees in the Supervisory Bargaining Unit will receive 8%, 8% and 7% each year.
The parties have also increased the minimum wages of employees over the period.
Steve Phiri, CEO of RBPlat, acknowledged with appreciation the commitment and dedication of the workforce which has enabled the company to continue stable operations.
“The constructive and mature manner in which both parties conducted the wage negotiations and the leadership shown by all is as a result of our continued engagement and sound relationships with our employees. This agreement provides RBPlat and all our business partners with a critical measure of stability as we continue to focus on growing our business for the benefit of all our stakeholders,” said Steve Phiri.