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Harmony and unions reach fair and reasonable wage agreement

Johannesburg: 2 October 2015. Harmony Gold Mining Company Limited (“Harmony” or “the Company”) is pleased to announce that it has reached a three year wage agreement with the National Union of Mineworkers, UASA and Solidarity, effective from 1 July 2015. Increases range from 6% for miners, artisans and officials to 10.4% for category 4 employees.

Graham Briggs, chief executive officer of Harmony commented: “Although it has been a protracted negotiation process, I believe that we have achieved what we set out to do - reaching an agreement which ensures that we remain sustainable as a company and as an industry, and at the same time limiting job losses. Thank you to the Chamber of Mines and each of the unions for negotiating a fair and reasonable wage increase”.

The new increase will ensure that all category 4 to 8 employees and B-lower officials will immediately receive an increase of R600 per month, to be back-dated to 1 July 2015, as well as a R100 per month increase in the living-out allowance in year 1 to be back-dated to 1 September 2015. In addition, category 4 to 8 employees and B-lower officials will receive an annual increase of R625 per month as from 1 July 2016, and another R650 as from 1 July 2017.

Harmony has also agreed to incorporate the rock drill operators’ (RDOs) allowance of R400 into basic pay and other operators’ allowance of R250 will also be included in their basic rates.

By the third year of the agreement (as at 1 July 2017) underground entry level employees (category 4 employees) will receive a total guaranteed wage of close to R14 000. Guaranteed pay excludes bonuses and includes: basic pay, service increments, average overtime and allowances, as well as a thirteenth cheque, medical and retirement contributions.

Miners, artisans and officials will receive an increase in their standard rate of pay of 6% back-dated to 1 July 2015. Increases in the second and third years of the agreement will be guaranteed at 6%.

Regrettably, the Association of Mineworkers and Construction Union (AMCU) has rejected the offers made by the company. Since agreement has been reached with unions representing the majority of employees at Harmony, the agreement will be extended to all employees.

For more details contact:

Henrika Ninham
Investor Relations Manager
+27 (0) 82 759 1775 (mobile)

Marian van der Walt
Executive: Corporate and Investor Relations
+27 (0) 82 888 1242 (mobile)

Annual report

Integrated annual report 2016
Integrated annual report 2017


Investor brief

Harmony Investor brief, Sep 2017
September 2017 -
Harmony Investor brief

(PDF - 6.5MB)

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