The Chamber’s Industrial Relations Services (IRS) provides service excellence to the members of the Chamber in the field of labour relations (i.e., in respect of labour market issues, collective bargaining, employment equity, social security and rural and local community development).

In pursuit of this mission, IRS offers the following services to Chamber members:

• the provision of specialist expertise and advisory input in industrial relations and labour market issues
• formulating and mandating industry policies and position papers on issues that will impact on the mining industry in particular and employers generally
• conducting centralised wage negotiations for the gold and coal sectors
• facilitating interaction between HR and IR representatives of member mines, principally through a standing committee known as the Labour Policy Committee
• regular dissemination of information to members, for example, through a quarterly publication known as the Labour Policy Digest which deals with topical issues in the labour market arena
• promoting and publicising policy positions endorsed by members in appropriate statutory and other forums
• representing members and mining interests in various key forums, for example, NEDLAC and the Mining Industry Sector Partnership Committee
• playing an active and leading role within the structures of Business Unity South Africa (BUSA) to ensure that mining interests are fully taken into account by that body
• representing the interests of the mining industry in Parliament
• on-going liaison with Government departments and officials
• on-going interaction with the leadership of the three unions that are operative in the mining sector, namely, the NUM, Solidarity and UASA.

The origins of the Chamber’s collective bargaining system go back as far as 1915, when for the first time the Chamber was assigned the role of negotiating for its members with employee organisations. It operates by virtue of agreements between the participants and established practice (it is not a statutory bargaining council system), and its most striking feature has always been said to be its flexibility.

The Chamber’s IRS conducts these centralised negotiations on wages and conditions of service on behalf of its member companies in the gold and coal sectors. The “wage negotiations” take place every other year, with the most recent round having taken place from June to September 2007. Again, two-year agreements were concluded for both gold and coal, so the next wage review will be conducted in 2009. The agreements cover all recognition units (Category 3 – 8 employees, miners and artisans and officials) and the three unions in the mining industry (the NUM, Solidarity and UASA) are party to the agreements.

Whereas in previous years there had been separate bargaining forums covering each of the three recognition units, in 2005 bargaining in respect of all of the members of the recognised unions took place for the first time in a unified forum. This was as a result of an agreement reached before the commencement of the 2005 negotiations on revised bargaining arrangements.

A further development was that the de facto separation of the gold and coal negotiation processes, which had been becoming more pronounced in recent years, was formalised in the establishment of two distinct forums.

The agreements that are reached centrally frequently reflect different provisions for different companies, particularly in respect of wage rates (actual basic wage rates are negotiated on a company by company basis). When it comes to non-wage issues, however, there is usually much uniformity in outcomes.

A feature of the Chamber process is that not all issues are dealt with at centralised level. In 1996 two-tier agreements were concluded which stipulated that bargaining on basic wages and conditions of employment would take place at Chamber level, while bargaining on organisational, operational and workplace issues would be at mine or company level. It frequently happens that framework agreements are formulated at the centre, leading to further negotiations on the issue concerned that take place at company or mine level.

The agreements concluded between the Chamber and the unions are far broader than wages and terms of employment and the period since the late 1980s has seen the parties addressing an array of socio-economic and transformational issues. These include:

• 1989 - Agreement to establish a provident fund for NUM members
• 1990 – Joint action by the Chamber and all recognised unions to curtail interracial violence being experienced on mines
• 1993/1994 – Chamber and all unions conclude AIDS agreements, followed in 2001 by a more comprehensive agreement with the NUM and, in 2003, the holding of an AIDS Summit
• 1993/1994 – Negotiation of Adult Basic Education and Training Agreements
• 1997 – Agreement on industry principles regulating health care
• 1997 – Agreement on principles and a process for the review of job grading systems
• 1998 – Gold Mining Summit, resulting in a six weeks’ moratorium on retrenchments and the formation of the Gold Crisis Committee and other initiatives
• 1999 – Chamber and NUM agree to conduct joint lobbying and protest action about the effects of the sale of gold by the IMF and central banks
• 1999 – Agreement on a medical incapacity benefit for category 3 to 8 employees, which was increased in 2001
• 2001 – Comprehensive agreement on affirmative action in appointments, training and development, retention of skills and employment of women
• 2003 – Framework agreement on women in mining
• 2003 – Framework agreement of principles relating to attainment of the accommodation objectives in the Mining Charter
• 2003 – Agreements relating to development of health care arrangements for dependants
• 2005 – Agreement on freedom of choice of retirement fund.

The majority of the large platinum producers are members of the Chamber, namely, Anglo American Platinum Corporation, Impala Platinum and Lonmin Platinum. However, the Chamber has never conducted collective bargaining on behalf of its platinum members, but company-specific arrangements are widely in place and collective bargaining coverage in the sector is extensive.

In the diamond sector, De Beers Consolidated Mines, the Trans Hex Group and the Namakwa Diamond Company are Chamber members. As in the case of its platinum members, the Chamber has never conducted collective bargaining on behalf of its diamond members, but company-specific arrangements are in place. The South African Diamond Producers’ Organisation exists as a lobby organisation for the alluvial diamond mining sub-sector and is itself also a member of the Chamber.

In 2003, the NUM demanded that a bargaining council be established for the mining industry which would inter alia result in centralised wage negotiations also for the platinum and diamond members of the Chamber. The Chamber and the NUM, UASA and Solidarity have been engaged in negotiations about the principles that would underpin the creation of a council for the industry since that time.

In 2007, the unions presented over 60 demands to the Chamber, including demands for wages to be increased by 15% in the case of the NUM and UASA and by 20% in respect of Solidarity. Many of the demands tabled by the unions had significant cost implications, including a minimum wage for underground employees, an increase in the minimum medical incapacity benefit, improvements in paid sick leave and paid accident leave, higher contributions to retirement funds, funeral cover, service increment and numerous special allowances.

The employers tabled various offers and some good progress was made on a number of the unions’ demands. Wage increases, however, remained in contention, with the NUM in particular being unprepared to accept anything less than a “double-digit” increase. This resulted in somewhat protracted negotiations culminating in intervention by the CCMA after a dispute was declared on 1 August 2007. Conciliation meetings were held on 14 and 22 August 2007. After a lengthy session on the latter date, the unions accepted that sufficient progress had been made for them to take the Chamber’s offers back to their members.

Amongst other items, the final agreement covered:

• a minimum basic wageof R3000.00 per month for entry level underground workers
• a significant increase in the basic wagefor entry level surface workers
• a wage improvement of 8.5% for category 4 to 8 workers
• a wage offer for allother employees of 8%, with a special arrangement for artisans
• an improved wage increment of 10% on the wage ratesfor surface and underground artisans;
• a new basic wage for rock drillers of at least R4000.00 by July 2008
• an increase in the living out allowance from R1000.00 per month to R1 200.00 by September 2008;
• the provision of 84 days paid sick leave over a two year cycle for all employees
• the entitlement to 140 days paid occupational disease leave over a two year cycle for employees suffering from pulmonary MDR/XDR TB linked to risk work
• mine accident leave to be standardised at 140 days paid leave over a two year cycle, with requests for additional leave to be dealt with compassionately at mine level
• an increase in the minimum lump sum payment for medical incapacity to R10 000, and an inflation linked increase in 2008
• agreement on a mechanism to ensure that the terms of service of contractors are in line with generally acceptable conditions of service.

The agreement is for two years. In the second year (with effect from 1 July 2008) wages will be increased by a percentage equal to CPIX plus one percentwith a guaranteed minimum of 8%.

The wage agreement was signed on 30 August 2007.

Click here to view entire wage agreement

After two negotiating sessions on 26 June and 3 July 2007, the unions in the coal sector declared a dispute with the employers on 12 July 2007. Two facilitators were subsequently appointed by the CCMA to conciliate the dispute. Conciliation meetings took place on 24 and 31 July and 3 August 2007. On 3 August the coal companies tabled their full and final settlement offers, conditional on acceptance. The NUM indicated that it would recommend the offers to its membership. UASA and Solidarity requested strike notices which would entitle them to embark on protected industrial action after giving 48 hours’ notice. Some of the members of Solidarity did engage in strike action on some of the collieries. There were varying levels of participation at different mines, but production at all mines continued.

In regard to Kangra Coal and Springlake Colliery, bilateral meetings, facilitated by the Chamber, took place between the mines’ management and the leadership of the NUM in the KwaZulu Natal region. These meetings took place on 3 September 2007 and both companies revised their offers. The NUM undertook to recommend the revised offers to its members.

The two-year wage agreement for Anglo Coal, Delmas Coal, Eyesizwe Coal, Optimum Colliery and Xstrata Coal SA was signed on 30 August 2007. The agreement in respect of Kangra Coal and Springlake Colliery was signed on 7 September 2007.

The wage increases for category 3 – 8 employees was 10% and increases for Miners, Artisans and Officials ranged from 7.5% to 9%.

Both agreements provided that in 2008 the Collieries would increase salaries and wages with the average of the March, April and May 2008 increases in the Consumer Price Index excluding interest rates on mortgage bonds (CPIX) plus 1% provided that employees would receive a guaranteed minimum increase of 8%, with the exception of Optimum Colliery which guaranteed CPIX plus 1.5%.

In addition to wages, the coal agreement dealt with a range of other issues, including:

• a guaranteed R3000 minimum salary for underground employees on most collieries;
• increases to living out and housing allowances
• 30 calendar days’ annual leave
• 140 days paid mine accident leave over a two year cycle
• 84 days paid sick leave over a two year cycle, with a special dispensation in the case of pulmonary MDR/XDR TB where the mine accident leave will be granted once sick leave has been exhausted
• five paid and four unpaid days of family responsibility leave
• a minimum lump sum payment of R10 000 for medical incapacitation or repatriation;
• options relating to funeral cover
• agreement on a mechanism to ensure that the terms of service of contractors are in line with generally acceptable conditions of service.

Click here to view wage agreement with AngloCoal, Xstrata, Eyesizwe, Delmas and Optimum

Click here to view agreement wth Kangra and Springlake collieries

Discussions with the unions on the possible establishment of a statutory bargaining council for the mining industry have been on-going since 2003.. At a meeting held on 15 September 2006, it was agreed that the Chamber would prepare a document for consideration by the unions setting out all the issues that are critical to the establishment of a council. The following principle issues on which the parties must reach agreement were set out in the Chamber’s document:

• the scope of the council
• recognition criteria for membership of the council for unions and employers’ organisations;
• levels of bargaining and the issues to be negotiated at the various levels
• how to define small and medium enterprises and best protect their interests
• how contractors would be covered
• the dispute resolution function of the council
• the appointment of an inspectorate to monitor and enforce compliance with council agreements by non-parties
• the extension of council agreements to non-parties
• the exemption body and procedure for exemptions from council agreements.

The unions submitted a collective response to the Chamber in February 2007, and a number of meetings on the above principle issues have subsequently taken place. Of particular importance hasbeen the discussions relating to contractors. It has been accepted by the unions and the Chamber that mining contracting companies do not own the mines and are not in possession of mining right licences. In addition, contracting companies operate across all commodities and have a presence in most geographical areas. Revenue earned by mining contracting companies is not determined by the sale of minerals or product, but rather as a contracted fixed margin outlined in a commercial contract with the mine owners. Mining contracting companies also operate in a true contracting environment where all the projects have defined commencement and completion dates. For all these reasons it has been agreed that contractors should be accommodated in a separate, dedicated sub-council of a miningbargaining council.

The position of small scale mining operations in a possible bargaining council also needs to be addressed, and this is being given attention.

The Minister of Labour has granted a number of determinations in terms of the BCEA to vary or exclude certain sections of that Act insofar as they apply to gold and coal members of the Chamber.

These determinations arise from the terms of the Chamber's 2007 wage agreements covering its gold and colliery members. The mines concerned have conditions of employment that, taken as a whole, are more favourable than those prescribed in the BCEA. The determinations have been designed, however, to take into account practical circumstances and arrangements prevailing in the gold and coal mining industries not catered for in the BCEA. A number of the variations are also to accommodate the preferences of the employees themselves in regard to working time.

The Chamber of Mines, together with stakeholders in other sectors, signed a Social Contract for Rapid Housing Delivery (Social Contract) in September 2005, as part of the Department of Housing’s ‘Breaking New Ground (BNG)’ Initiative aimed at fast tracking the delivery of low-cost housing. On behalf of its members, the Chamber has committed itself to the following:

promote the sustainable development approach of the Mining Charter including support for local entrepreneurs involved in housing

• interact at mine and/or regional level on an on-going basis with local and district municipalities to ensure that there is alignment and integration in the development of towns and housing units
• improve the standard of accommodation for mineworkers, including the upgrading and conversion of hostels into family units and other types of housing units in an economically feasible manner
• promote home ownership and other forms of tenure for all employees
• develop guidelines/codes at mine level that regulate the utilisation of loaned monies for purposes of purchasing or building houses, and that encourage employees to utilise housing allowances and housing loans for accommodation purposes
• make agreed land available, where appropriate, for housing development and facilitate access to mortgage loans with a view to improving access to affordable housing options.

The IRS Assistant Industrial Relations Adviser serves on a number of task teams established by the Department to deal with issues flowing from the Social Contract and participates actively in the annual plenary discussions.

Click here to view entire social contract

In addition to providing collective bargaining and advocacy services, the Chamber’s IRS provides information on labour related matters, particularly through its quarterly Labour Policy Digest which contains articles on topical labour policy issues. Four issues of the Digest are produced annually and are distributed widely throughout the industry.

Click below to view Labour Policy Digests:

Members of the IRS serve on a number of outside bodies, both specific to the mining industry, and also more broadly, so as to ensure that the interests of the mining industry are well represented in key policy formulating and advocacy forums.

Chamber Officials from IRS serve as members of BUSA’s Standing Committee on Social Policy, a forum which also serves as the employer caucus for the NEDLAC Labour Market Chamber. IRS Chamber Officials are also members of the NEDLAC Labour Market Chamber, with the Industrial Relations Adviser serving as the Business Convenor of this Chamber and as a member of the NEDLAC Management Committee.

The Assistant Industrial Relations Advisor represents employers on the NEDLAC Section 77 Committee which processes applications for socio-economic protest action in terms of section 77 of the Labour Relations Act.

Click here for BUSA website

In terms of current labour legislation, representatives from NEDLAC join with the Judicial Services Commission to interview candidates who have been nominated to serve as Judges in the Labour Court and Labour Appeal Court. The Industrial Relations Adviser represents business in these processes.

The primary function of the Commission is to advise the Minister of Labour on the provisions of sectoral determinations for sectors that are not organised and thus need nationally regulated terms of employment and minimum wages. IRS’ Assistant Industrial Relations Adviser represents business on the Commission.

The tripartite Sector Partnership Committee is a sub-structure of the Minerals and Mining Development Board and has a mandate to support the Board in executing its responsibilities in terms of the Mineral and Petroleum Resources Development Act. The Sector Partnership Committee oversees the activities of its three working committees and reports on their progress to the Board. The three working committees deal with transformation, beneficiation and the promotion of the industry. IRS Officials are represented on the Transformation Implementation Structure.

TEBA Development is an organisation that facilitates integrated sustainable development in mining communities, both nationally and in the Southern African Region. Development projects are undertaken in areas from which mineworkers originate and also amongst communities where ex-mineworkers reside. The organisation is funded by the mining industry. The IRS Assistant Industrial Relations Adviser serves on the Board of TEBA Development.