Coal miner Thungela Resources has signed a three-year wage deal with the National Union of Miners (NUM) – the recognized union in Thungela’s operations, which represents 86% of unionized workers.
This agreement allows the implementation of a new wage agreement in all Thungela operations, with the exception of Mafube which manages an independent wage negotiation process.
The agreement comes into force on June 1 and covers a period of three years until the end of May 2025.
The wage agreement increases wages and wage-related allowances and is expected to increase total labor costs to the company, on average, by around 6% per year over the three-year period.
Under the agreement, Thungela and the NUM also agree to engage the Board of the SACO Employee Partnership Plan (EPP) Trust to review and amend the Trust Deed to enable the payment of compensation paid to the EPP in the same fiscal year in which they are declared, as opposed to an acquisition over a three-year period.
“We are very pleased to have reached an agreement with our employees and I thank the NUM for their collaboration and constructive engagement during the wage negotiation process. The agreement recognizes the important role that our employees have in creating responsible value together for a shared future,” says CEO of Thungela July Ndlovu.