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Court declares Sibanye's extension of wage agreement to all workers valid

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Court declares Sibanye's extension of wage agreement to all workers valid

Sibanye Gold Ltd. said South Africa's Labor court declared that extending a wage agreement the company reached in November 2018 to the Association of Mineworkers and Construction Union and other nonunionized workers is valid.

The company reached a wage agreement with the National Union of Mineworkers, Solidarity, and the United Association of South Africa in November 2018 and extended it to all employees at its South African gold operations in December 2018.

Sibanye said March 20 that the Association of Mineworkers and Construction Union should follow the court ruling.

"We urge AMCU to respect the ruling and allow due processes to be followed in the interest of all parties and a peaceful resolution to this strike," Sibanye CEO Neal Froneman said.

The company will now initiate an independent verification process to confirm the various unions' level of representation required to implement the extension agreement.

Earlier in the week, AMCU broadly accepted a proposed settlement agreement by the Commission for Conciliation, Mediation and Arbitration to resolve the wage dispute. The commission proposed a payment of 5,700 South African rand along with other benefits from a previous three-year wage agreement.