HARMONY GOLD MINING COMPANY LIMITED - Harmony reaches five-year wage agreement

Harmony reaches five-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 REACHES FIVE-YEAR WAGE AGREEMENT


Johannesburg, Thursday, 4 April 2024. Harmony Gold Mining Company Limited
("Harmony" and/or "the Company") has concluded a landmark five-year wage
agreement ("the Agreement") in respect of increases to wages and other
conditions of service with its five labour unions, being the Coalition
(comprising the NUM, UASA and Solidarity), AMCU, and NUMSA. The agreement
is for the period 1 July 2024 to 30 June 2029 and will take effect on 1
July 2024.


Harmony CEO Peter Steenkamp noted: "For the first time in our 73-year
history, we have concluded a five-year wage agreement with all of our labour
unions. This is testimony to the strength of our labour relations and
ensures stability and continued certainty on our fixed labour costs for the
next five years. This milestone agreement has been reached three months
before the existing agreement's expiry. It is fair and balanced, considering
the impact that increases in the cost of living are likely to have on
employees over the next five years. We are pleased that the wage negotiations
were carried out in good faith and commend all parties for demonstrating
good leadership by engaging constructively. Our people are our top priority,
and I thank everyone involved in making this possible."


Details of the agreement:
The agreement allows for the following increases to monthly wages:
  -   Category 4 – 8 employees will receive a wage increase of R1 200 in
      year 1; R1 250 in year 2; R1 300 in year 3; R1 450 in year 4; and R1
      500 in year 5.


  -   B-lower employees will receive a wage increase of R1 200 or 6.2%
      (whichever is greater) in year 1; R1 250 or 6.2% or CPI (whichever is
      greater) in year 2; R1 300 or 6.2% or CPI (whichever is greater) in
      year 3; R1 450 or 6.35% or CPI (whichever is greater) in year 4; and
      R1 500 or 6.5% or CPI (whichever is greater) in year 5.
  -    Miners, Artisans and Officials will receive a wage increase of 6.2%
       in year 1; 6.2% or CPI (whichever is greater) in year 2; 6.2% or CPI
       (whichever is greater) in year 3; 6.35% or CPI (whichever is greater)
       in year 4; and 6.5% or CPI (whichever is greater) in year 5.

In addition to the basic wage increases, the parties agreed to the following:
  -     The current monthly housing allowance will increase as follows:
           o Year 1: R3 360
           o Year 2: R3 480
           o Year 3: R3 660
           o Year 4: R3 840
           o Year 5: R4 020

  -     The current monthly living-out allowance will increase as follows:
           o Year 1: R100 to R2 800
           o Year 2: R100 to R2 900
           o Year 3: R150 to R3 050
           o Year 4: R150 to R3 200
           o Year 5: R150 to R3 350


Employees not making use of available company-provided accommodation are
eligible for either a housing allowance or a living-out allowance, but not
both.


Several non-wage related and process issues have been agreed to, including
increasing the current guaranteed minimum severance and medical incapacity
payments, medical aid co-contributory benefits, and maternity and paternity
leave.


This agreement will result in an increase of approximately 6% per annum
over the five-year period which is within Harmony planning parameters.


Ends.


For more details contact:
Jared Coetzer
Head of Investor Relations
+27 82 746 4120
Jared.Coetzer@Harmony.co.za

Johannesburg, South Africa
4 April 2024

Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited

Date: 04-04-2024 03:19:00
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