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HARMONY GOLD MINING COMPANY LIMITED - Harmony concludes three-year wage agreement

Release Date: 16/09/2021 15:39
Code(s): HAR     PDF:  
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Harmony concludes three-year wage agreement

Harmony Gold Mining Company Limited
Registration number 1950/038232/06
Incorporated in the Republic of South Africa
ISIN: ZAE000015228
JSE share code: HAR
(“Harmony” or “the company”)


   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:

  -   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.
  -   Miners, Artisans and Officials will receive a wage increase of 6%
      of their basic wage for each year of the agreement.
  -   The total average wage increase negotiated is 7.8% in year 1, 7.4%
      in year 2 and 7.0% in year 3.
  -   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:

Sihle Maake
Head of Communications
+27 (0) 83 722 5467

Jared Coetzer
Head of Investor Relations
+27 (0) 82 746 4120
Mashego Mashego
Executive Director: Corporate Affairs
+27 (0) 82 767 1072

Memory Johnstone
+27 (0) 82 719 3081

16 September 2021

J.P. Morgan Equities South Africa Proprietary Limited.

Date: 16-09-2021 03:39:00
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