The National Union of Mineworkers (NUM) has reached a salary increase agreement with Impala Platinum (Implats) regarding employees at the platinum group metals miner’s refinery operations in Springs.
Implats and other SA platinum group metals (PGM) producers have been retrenching workers and restructuring operations to survive the current PGM industry price downturn.
According to the World Platinum Investment Council, South Africa’s “PGM mining industry will have reduced its headcount by around 10 000 employees” in 2024, representing a 6% headcount reduction.
Employees at Implats’ refinery operations in Springs east of Johannesburg, however, will not be affected by the retrenchments that the company has been implementing across its PGM operations.
NUM said on Friday that it had “concluded and signed a wage agreement on behalf of members at the base and precious metals refineries” division, Impala Platinum Refineries.
Under the agreement, said NUM, Impala had agreed to “harmonisation of B lower- to C upper-level employees”, with the deal effective July 1, 2024, to June 30, 2028. Impala Platinum Refineries employees will receive varying wage increases over the period.
These include workers in categories BL, BU, B5 and B7, who would receive wage increases of 8% in year one, 7.5% in year two, 7.5% in year three and 8% in year five.
Employees under category CL would respectively receive wage increments of 7% in year one, two, three and four, while those in category CU would receive 7% in year one, and 6.5% in year two, three and four.
“We are very much delighted to have this agreement signed within the stipulated negotiations time. We are therefore applauding all parties at the negotiating table for the job well done, and for our members who have demonstrated patience throughout”, said Senzo Mncwango, regional secretary for NUM’s Pretoria, Witwatersrand and Vereeniging (PWV) region.
There will be a medical subsidy under which workers will be entitled to R740 in year one, R760 year two, R780 year three and R800 in year four.
First dependants would also receive R500 in year one, R515 in year two, R530 in year three and R545 in year four, while other dependants would receive R300 in year one, R305 in year two, R310 in year three and R315 in year four.
In terms of accommodation allowances, workers in category B would receive a R3 500 housing allowance in year one, R3 600 in year two, R3 700 in year three and R3 800 in year four.
Over the full year period to June 2024, Implats raised refined production by 14% to 3.38 million ounces. This was after production for the year firmed up 13% to 3.65m ounces, although the group’s dollar revenue per 6E ounce was 34% softer at $1 350 on materially lower rhodium and palladium pricing.
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