Stability, a focal point of the recent gold sector wage negotiations, is expected after the National Union of Mineworkers (NUM) signed a five-year, above-inflation wage deal with another gold miner, DRDGold.
DRDGold confirmed that wage negotiations at its Ergo mining operation have been finalised, following the conclusion of a single wage agreement with labour.
The firm said the agreement, signed by National Union of Mineworkers, the majority union in the bargaining unit, applies to all employees, regardless of union affiliation.
DRDGold and NUM finalise five-year wage deal
The miner also said the agreement provides for guaranteed annual wage increases of 6%-7.5% over five years.
The increase is well above current inflation and aligned with recent agreements concluded in the gold sector.
It will also include a new 2% performance-based incentive linked to safety, production, and attendance; improvements to the living out allowance; an interest-free housing support scheme; and back pay from 1 July, 2025 payable in terms of the agreement.
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A one-off R5 000 ex gratia payment will also be made to all employees in the bargaining unit.
“This agreement brings much-needed certainty for our employees and for the Ergo operations,”said DRDGold CEO Niël Pretorius.
“It reflects constructive engagement by all parties and balances meaningful improvements in employee remuneration with the business’ long-term sustainability.
Gold mining sector gains certainty
“Importantly, it allows us to move forward together, focused on safe, stable operations and continued value creation.”
According to mining experts, the agreement will help bring stability to the sector for at least five years, with no wage-related industrial action, which would positively impact production.
Since late last year, the sector has concluded several multiyear agreements focused on stability.
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At Sibanye-Stillwater gold operations, parties reached a three-year agreement with 4.5%-5% (R840-R1 000) increases.
The agreement was signed by NUM, the Association of Mineworkers and Construction Union, UASA, formerly United Association of SA, and Solidarity. It covers three years, from 1 July, 2025 to 30 June, 2028.
At Harmony in 2024, the deal was for five years at a 6% annual increase and was expected to expire in 2029.
Balance of inflationary pressures
These deals reflect a balance of inflationary pressures, the need for operational stability and improved employee remuneration.
DRDGold is the latest to agree to a similar wage agreement, which some experts believe is necessary to avoid sector instability.
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