The National Union of Mineworkers (NUM) described the wage offers from mining companies, represented by Minerals Council South Africa (MCSA), as a "pittance or insulting".
It said producers had offered annual wage increases of up to R550 to miners and up to 4.5% for artisans, miners, and officials.
MCSA noted that, as the four different companies — Harmony, Sibaney-Stillwater, AngloGold Ashanti and Village Main Reef — all had different circumstances, they had tabled different offers against the backdrop of a stagnant gold price, rising costs, operational challenges, falling profitability, and policy and regulatory uncertainty.
Harmony was offering the highest first-year increase of R500, or a 6.5% pay increase, for category 4-8 underground employees, with the other three offering R450, a 5.5-5.6% increase. Subsequent years were between R450-525 for the second year and R475-550 for the third.
Miners, artisan and officials were being offered a first-year raise of 3% from Sibanye-Stillwater, 3.5% from Village and 4.5% from Harmony and AngloGold, while Sibanye-Stillwater was offering 3% and 3.5% for the second and third years, respectively, and the others were offering an increase linked to the consumer price index.
The NUM said it was still demanding R9,500 for the surface workers, R10,500 for the underground and 15% for the artisans, miners, and officials.
"These wage offers are not even close to what our members are demanding. The gold producers have been very arrogant in their approach to this wage negotiation to the extent that their offer on the table smacks of insults and arrogance," it said.
Unions had also called for two-year contracts, rather than the three the mining companies want.
MCSA chief negotiator Motsamai Motlhamme spoke to the unions before the offers were tabled about the challenges facing the industry and pointed out that, despite declining production, it continued to make an important contribution to the country as whole.
He noted that, according to recent statistics, the gold sector contributed R43 billion towards South Africa's GDP in 2016; and in 2017 produced 138 tonnes of gold; employed around 112,000 people; contributed R6.5 billion in taxes; paid royalties of R1 billion; and paid employee wages and benefits of around R30 billion.
The talks will reconvene July 25 when the unions will give feedback on the offers.
