KEY POINTS
- Sibanye-Stillwater reached a 5.5% wage agreement with gold workers.
- The deal covers miners, artisans, and officials until June 2025.
- The company plans to negotiate a new agreement in July 2025.
Diversified mining company Sibanye-Stillwater has reached a one-year wage agreement with its gold mining workforce in South Africa, securing a 5.5% pay increase for employees at the Beatrix, Driefontein, and Kloof mines. This agreement, announced on Monday via a Sens statement, was made following negotiations with key unions, including the Association of Mineworkers and Construction Union (Amcu), the National Union of Mineworkers (Num), Uasa, and Solidarity, which began in July.
Sibanye-Stillwater strikes one-year wage deal with unions
Sibanye-Stillwater CEO Neal Froneman highlighted that this one-year agreement contrasts with recent five-year deals struck by other South African mining companies, such as Harmony Gold and Pan African Resources. The wage increase, effective through June 2025, includes a 5.5% rise or an additional R900 per month, whichever is higher, for category 4 to 8 workers, miners, and artisans. Company officials will also receive a 5.5% increase. Froneman noted that the agreement is fair to employees and economically sustainable given the company’s current position.
Agreement secures 5.5% raise for South Africa gold miners
Froneman emphasized that Sibanye-Stillwater’s decision to pursue a one-year deal was influenced by recent restructuring efforts in its South African gold operations and by the volatility in inflation, which has created challenges in stabilizing these sites. “We believe it is more prudent and fairer to re-engage again in July 2025,” Froneman stated. The company aims to review the terms at that time and potentially negotiate a longer-term arrangement based on more stable conditions.
CEO Neal Froneman sees deal as fair and affordable
The recent wage agreement comes after a history of labor challenges. In 2022, Sibanye-Stillwater workers at its gold operations staged a lengthy strike, which ultimately ended with a three-year agreement and the addition of a hardship allowance. Froneman’s current approach signals a commitment to maintaining affordable, flexible labor agreements that can adapt to the company’s operational needs.
With Sibanye-Stillwater’s gold mining operations navigating economic challenges and inflationary pressures, the one-year agreement provides both stability and the flexibility to respond to changing market conditions.
