Minister welcomes end to coal strike

Zwane, who is a few weeks into his portfolio, said he is deeply encouraged that the parties who were at odds during the coal strike had finally come to an agreement.

The National Union for Mineworkers (NUM) and the Chamber of Mines signed a landmark two-year agreement earlier on Tuesday. Solidarity was also one of the signatories to the agreement.

The agreement would see the lowest paid workers receive wage increases of between 5.5 and 7.5 percent over the next two years.

“We are encouraged that the parties were able to find each other. The speedy resolution to the strike is in the interests of workers, the companies and the South African economy as a whole,” Minister Zwane said.

Deon Reyneke, Head of Energy at Solidarity said the organisation “continuously tried to reconcile the needs of its members with the sustainability of the coal industry. We believe that this agreement as succeeded in fulfilling this goal”.

Workers at several mines, including Anglo American Coal SA, Exxaro Coal Mpumalanga, and Glencore Operations SA would receive wage increase wage of between 5.5 percent and 7.5 percent in the first year, and in the second year, a 7.5 percent increase or an increase equal to the inflation rate, whichever was the highest at the time.

The retirement age for workers was also extended from 60 to 63.

In light of this outcome, Zwane said he urged “all parties currently in wage negotiations to continue to adhere to the principles as set out in the Framework Agreement for A Sustainable Mining Industry” and conclude agreements that are beneficial in the long run for either party, make a positive contribution to the country’s economy and attract much needed investment.