Royal Bafokeng Platinum (RBPlat) has concluded a five-year wage agreement with its permanent employees represented by the National Union of Mineworkers, the company said in a statement on Monday.
The agreement would ensure a period of greater stability and certainty for the miner and its employees, it said.
The deal will provide RBPlat [JSE:RBP] with "five years of stability" and was achieved "through a collaborative process exemplified by mutual respect between RBPlat and NUM", the statement noted, saying: "The Company acknowledges with appreciation to the union the maturity with which these very difficult negotiations were conducted."
It added: "The agreement removes substantial uncertainty for our employees into the future and allows the Company’s employees to remain focused on safety and productivity. Both parties are committed to working towards ensuring a sustainable business that will create long-term value for all our stakeholders."
The deal is effective from July 1, 2019, and includes increases for "all major components of remuneration" over the next five years. Employees will receive a 7% increase in their annual salary in the first year, 6% in year two, 6% in year three, 7% in year four and 7% in year five. The entry level minimum wage will also increase, and employees whose remuneration falls below the entry level minimum wage after the increases have been applied will have their pay adjusted.
Benefits such as medical aid and housing allowances will also be increase, RBPlats said.
The deal will be reviewed in the third year to ensure that increases are in line with the Consumer Price Index.
Earlier in November, Anglo American Platinum [JSE:AMS], Impala Platinum and Sibanye announced a three-year wage deal with the National Union of Mineworkers, the Association of Metalworkers and Construction Union and Uasa.