Sibanye Gold Limited
Trading as Sibanye-Stillwater
Incorporated in the Republic of South Africa
Registration number 2002/031431/06
Share code: SGL
ISIN – ZAE000173951
Issuer code: SGL
(“Sibanye-Stillwater” or “the Group” or “the Company”)
Sibanye-Stillwater signs three-year gold wage agreement with three unions
Johannesburg, 15 November 2018. Sibanye-Stillwater (Tickers JSE: SGL and NYSE: SBGL) is
pleased to advise that it has concluded a three-year wage agreement with the National
Union of Mineworkers (the NUM), Solidarity and UASA in respect of wages and conditions
of service for the period 1 July 2018 to 30 June 2021.
The agreement allows for increases to the basic wage of Category 4-8 surface and
underground employees of R700 per month in the first year, R700 per month in the second
year and R825 per month in the third year. Miners, artisans and officials will receive
increases of 5.5% in year one and 5.5% or CPI (whichever is the greater) in years two
and three of the agreement.
Sibanye-Stillwater CEO, Neal Froneman commented: “We are pleased to have reached a wage
agreement with the NUM, UASA and Solidarity, which we believe is fair, but takes into
consideration the longer term sustainability of the gold operations. It is only through
ensuring sustainable and economically viable operations, that the mining industry can
continue to support and create value for all of its stakeholders.”
In addition to the basic wage, the parties agreed to an increase in the current living-
out allowance by R50 to a maximum of R2 150 per month from 1 September 2018. The company
will increase the living-out allowance by R75 to a maximum of R2 225 per month on 1
September 2019 and by R100 to a maximum of R2 325 per month in the year that follows.
Sibanye-Stillwater has also agreed to increase incrementally the current minimum medical
incapacity benefit of R55 000 to R60 000 over the three-year period by increasing the
benefit by R1 500 on 1 July 2018; R 1 500 on 1 July 2019; and R 2 000 on 1 July 2020.
Sibanye-Stillwater currently employs 32 231 employees at its SA gold operations in the
bargaining unit.
Other non-wage items agreed
In addition to the wage increase, the following additional non-wage issues have been
agreed by the parties:
•
Increase of the guaranteed minimum severance payment to R50,000 over the three-
year period.
•
Female employees will be entitled to four months of paid leave with an option of
spreading the four months paid maternity leave over a period of six months.
Medical Aid
The parties agreed that the company needs to introduce a cost-effective uniform approach
to healthcare across all its gold operations. This requires a review of the company’s
current approach of providing healthcare to category 4-8 employees and the subsidised
benefits offered to miners, artisans and officials. The company will establish a task
team to look at the various medical aid schemes with a view to shifting employees to a
new medical aid dispensation. The task team will complete its work within six months
of signing of the wage agreement and the new system will be implemented no later than
January 2020.Sibanye-Stillwater, which has been contributing 60% of category 4-8
employees’ medical aid payments since 2011, has agreed to make this concession a
condition of employment in respect of category 4-8 employees who will join the medical