Assessment of the profit sharing schemes on certain Chamber Gold Mines, July-December 1992

In 1991 and 1992, the NUM accepted basic wage increases on the gold mines that were far below the annual inflation rate because of the crisis in the industry. The priority of the union was to preserve employment. But this left the door wide open for rich mines (like Kloof, Elandsrand and Vaal Reefs) to hide behind the low increases that are set in the Chamber negotiations at levels that Free gold, BuffeIsfontein and marginal mines can live with. The NUM decided that workers need a way of adding more money onto their wages If the mines can afford to pay more. The ideal is for a national wage policy in which the richer mines can help the poorer mines to pay the same wages. But this will mean new tax laws, new ownership rules and a new government to force it all through. Right now, the union needs a special policy for collective bargaining in an industry that is in long term decline. The economy is not growing, few new mines are opening, so workers who get retrenched are threatened with starvation. NUM has already accepted a reduction in real wage standards to slow down the speed at which mines are contracting