Pan African Resources PLC has reported wage agreements at Barberton Mines Propritery Limited with both the National Union of Metalworkers (NUM) and the Union Association of South Africa (UASA). 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
- 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.
Cobus Loots; Pan African CEO, commented: “We are pleased with the outcome of the negotiations and commend the constructive spirit in which they were conducted.”
Pan African Resources plc was trading at 2.07% lower at R3.31 during the afternoon trade.