The problems began with negotiations for the second and third quarters of 2009, which ended in arbitration. The Arbitral award, while admittedly poorly worded, clearly provided for a minimum wage of $120, later confirmed by two separate independent legal opinions. The Chamber informed its members of the new rates, which were implemented by the industry. The AMWUZ immediately challenged the rates being used by the Chamber, insisting they were incorrect, their interpretation being a figure of $140, which included a number of additional erroneous payments awarded by the Arbitrator, that were outside the scope of his terms of reference, and which in any case were already being provided free of charge in accordance with existing legislation, such as protective clothing, uniforms and limited medical benefits.
Negotiations for the fourth quarter of 2009 were terse and unproductive, mainly caused by the lack of an agreed figure on which to base any further increases. It must be clearly noted that at no time have the trade union challenge the interpretation of the Chamber, which they were entitled to do in terms of our labour laws.
In January 2010 the AMWUZ began planning for strike action, which culminated in a three day limited strike that started on 15 May 2010. A “Show Cause Order” issued by the minister of Labour and Social Services effectively ended the strike action and the matter was referred to the Labour Court for determination. The issue before the court was the legality, or otherwise, of the action taken by the trade union. The hearing has been completed and the result is awaited from the court.
In the meantime a series of informal meetings were being held between the parties. There were threats of further strike action, and disciplinary proceedings, and even reference back to arbitration. However, it is pleasing to note that common sense prevailed, and an agreement was eventually reached that was probably the best that either party could have expected. The signing of the agreement re-inforces the view that most areas of disagreement can be resolved through dialogue, and discussion, and strike action should be avoided if at all possible.
The agreement is unusual from those of the recent past in that there are different levels of pay for the gold sector on one hand, and other metal (base) producers on the other. A copy of the agreement is attached.
