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Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
JSE share code: HAR
('Harmony' or 'the company')
HARMONY CONCLUDES THREE-YEAR WAGE AGREEMENT
Agreement balances the best interest of employees and the long-term sustainability of Harmony
Johannesburg, Thursday, 16 September 2021. Harmony Gold Mining Company Limited ('Harmony' and/or 'the Company') has concluded a three-year wage agreement ('wage agreement') in respect of wages and conditions of service for the period 1 July 2021 to 30 June 2024. The wage agreement was agreed with the following labour unions: The Association of Mineworkers and Construction Union (AMCU), the Coalition (comprising The National Union of Mineworkers (NUM), United Association of South Africa (UASA) and Solidarity) and The National Union of Metalworkers of South Africa (NUMSA).
Harmony CEO, Peter Steenkamp said: 'This wage agreement reflects the strong partnership between Harmony and organised labour, demonstrating our commitment towards our long-term sustainability and our people. We would like to thank everyone involved for engaging constructively and keeping everyone's best interests at heart.'
The agreement allows for the following wage increases:
a.Category 4 to 8 employees will receive a wage increase of R1,000 for each year of the wage agreement. This translates to an average increase of 8.4% for employees across these categories.
b.Miners, Artisans and Officials will receive a wage increase of 6% of their basic wage for each year of the agreement.
c.The total average wage increase negotiated is 7.8% in year 1, 7.4% in year 2 and 7.0% in year 3.
d.98% of Harmony employees are part of the bargaining unit covered by this wage agreement.
In addition to the basic wage increases mentioned above, the parties have agreed to the following benefits:
1.As part of Harmony's drive to promote home ownership, a housing allowance will be introduced for the benefit of employees who choose to purchase a residence or who have already entered into bond agreements. The housing allowance will be R2,750 in year 1 and increase incrementally each year up to a maximum value of R3,240 in year 3.
2.Employees not eligible for the housing allowance will receive a living-out allowance of R2,500 in year 1, which will increase by R100 in year 2 and in year 3 respectively. All employees will be eligible for either a housing allowance or a living-out allowance, but not both.
3.A number of non-wage related and process issues have been agreed to, including: maternity and paternal leave; medical incapacity and medical aid benefits.
This is the first wage agreement reached outside the auspices of the Mineral Council's central bargaining forum and will be marked by way of an in-person signing ceremony to allow all parties to participate in and witness the signing of the agreement. This ceremony will take place at the Birchwood Conference Centre in Boksburg. All the necessary Covid-19 health and safety protocols will be followed.
For more details, contact:
Head of Communications
+27 (0) 83 722 5467
Head of Investor Relations
+27 (0) 82 746 4120
Executive Director: Corporate Affairs
+27 (0) 82 767 1072
+27 (0) 82 719 3081
16 September 2021
J.P. Morgan Equities South Africa Proprietary Limited.
Harmony Gold Mining Company Ltd. published this content on 16 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2021 14:41:11 UTC.