Gold Fields' South Deep Gold Mine and the NUM and UASA Reach Three-year Wage Agreement

Rhea-AI Summary

Gold Fields' South Deep Gold Mine and the NUM and UASA trade unions have finalized a three-year wage agreement effective from 1 March 2021 to 28 February 2024. The deal includes wage increases of 8% for Category 4-8 employees and 6% for miners, artisans, and officials in the first year, with subsequent increases based on CPI. The average settlement increase is 6.5% annually over three years. Non-wage issues, such as leave and shift configurations, were also addressed. This agreement aims to improve employee livelihoods amidst the challenging economic climate.

Positive

• Wage increases of 8% for Category 4-8 employees and 6% for miners and artisans.
• Average settlement increase of 6.5% per year over three years.
• Agreement sets a benchmark in wage negotiations in the mining sector.

Negative

• None.

WESTONARIA, South Africa, June 11, 2021 /PRNewswire/ -- Gold Fields' South Deep Gold Mine and the NUM and UASA trade unions have concluded a three-year wage agreement for the period 1 March 2021 to 28 February 2024.

The parties believe that the agreement is in the best interest of employees and the mine's long-term sustainability.

The agreement provides for the following:

• Category 4 – 8 employees will receive a wage increase of 8% in year 1, and 8% or CPI (whichever is the greater) in years 2 and 3.
• Miners, Artisans and Officials will receive a wage increase of 6% in year 1, and 6% or CPI (whichever is the greater) in years 2 and 3.
• CPI-related increases will also be applied to housing allowances. Living-out allowances will be phased out over the three-year period, as required by the Department of Mineral Resources and Energy, and as the mine rolls out its housing strategy.

The total increase of the settlement amounts to an average increase of 6.5% a year over the three-year period.

A range of non-wage related issues have also been agreed to, including an alignment of leave and shift configurations, as well as amendments to other conditions of employment with a view to standardise them across all occupational levels and simplifying associated administrative processes.

NUM PWV Regional Chairperson, Ndlela Radebe, said: "Considering the difficult circumstances South Africa and the world are facing due to the Covid-19 pandemic, we are satisfied with the settlement we have entered into. We believe it will go a long way in improving the livelihoods of workers and their families, while sustaining the business and ensuring sustainable job security.

"We wish to commend all parties involved (the NUM, UASA and the Gold Fields South Deep management team) for the constructive and harmonious spirit in which wage negotiations were undertaken. This is appreciated. As the NUM, we look forward to continuing the much-improved working relationship between the parties for the foreseeable future."

Divisional Manager and Chief Negotiator for UASA, Franz Stehring noted: "Given the prevailing economic climate and the bullish commodity market, the settlement reached with South Deep Gold Mine through constructive engagements sets a benchmark for other mining companies."

Gerrit Lotz, VP People and Organisational Effectiveness at South Deep, concluded: "The settlement agreement is fair and balanced, taking into account the impact that increases in cost of living are likely to have on employees over the next three years, and the future sustainability of our mine. We commend all parties for the constructive manner in which the negotiations have taken place."

Enquiries

Media

Sven Lunsche
Tel:  +27 11 562-9763
Email:  Sven.Lunsche@goldfields.com

Memory Johnstone
Mobile:  +27 82 719 3081
Email:  memory@rasc.co.za

Investors

Avishkar Nagaser
Mobile:  +27 82 312 8692
Email : Avishkar.Nagaser@goldfields.com

Thomas Mengel
Mobile:  +27 72 493 5170
Email:  Thomas.Mengel@goldfields.com

Notes to editors

About Gold Fields

Gold Fields Limited is a globally diversified gold producer with nine operating mines and one project in Australia, Chile, Ghana (including our Asanko Joint Venture), Peru and South Africa, with total attributable annual gold-equivalent production of 2.24Moz. It has attributable gold-equivalent Mineral Reserves of 52.1Moz and gold Mineral Resources of 116.0Moz. Gold Fields has a primary listing on the Johannesburg Stock Exchange (JSE) Limited, and an additional listing on the New York Stock Exchange (NYSE).

Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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SOURCE Gold Fields Limited

FAQ

What is the wage agreement reached by Gold Fields (GFI) in June 2021?

Gold Fields (GFI) reached a three-year wage agreement with NUM and UASA unions, offering 8% wage increases for Category 4-8 employees and 6% for miners and artisans in the first year.

How long is the wage agreement for Gold Fields (GFI) effective?

The wage agreement for Gold Fields (GFI) is effective from 1 March 2021 to 28 February 2024.

What are the annual wage increase percentages for Gold Fields employees?

Category 4-8 employees will receive an 8% wage increase, while miners and artisans get a 6% increase in the first year, with increases tied to CPI in the following years.

What issues were addressed in the Gold Fields (GFI) wage agreement aside from salary?

The agreement also addressed non-wage issues, including adjustments to leave and shift configurations to standardize employment conditions.

What impact does the Gold Fields (GFI) wage agreement have on employee livelihoods?

The wage agreement is expected to improve the livelihoods of employees and their families, enhancing job security amidst economic challenges.