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HARMONY GOLD MINING COMPANY LIMITED - Harmony and unions reach fair and reasonable wage agreement

Release Date: 02/10/2015 16:23:00      Code(s): HAR       PDF(s):  
Harmony and unions reach fair and reasonable 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” and/or “the Company”)

Harmony and unions reach fair and reasonable wage agreement

Harmony Gold Mining Company Limited (“Harmony” or “the
Company”) is pleased to announce that it has reached a three
year wage agreement with the National Union of Mineworkers,
UASA and Solidarity, effective from 1 July 2015. Increases
range from 6% for miners, artisans and officials to 10.4% for
category 4 employees.

Graham Briggs, chief executive officer of Harmony commented:
“Although it has been a protracted negotiation process, I
believe that we have achieved what we set out to
do - reaching an agreement which ensures that we remain
sustainable as a company and as an industry, and at the same
time limiting job losses. Thank you to the Chamber of Mines
and each of the unions for negotiating a fair and reasonable
wage increase”.

The new increase will ensure that all category 4 to 8
employees and B-lower officials will immediately receive an
increase of R600 per month, to be back-dated to 1 July 2015,
as well as a R100 per month increase in the living-out
allowance in year 1 to be back-dated to 1 September 2015. In
addition, category 4 to 8 employees and B-lower officials
will receive an annual increase of R625 per month as from 1
July 2016, and another R650 as from 1 July 2017.

Harmony has also agreed to incorporate the rock drill
operators’ (RDOs) allowance of R400 into basic pay and other
operators’ allowance of R250 will also be included in their
basic rates.

By the third year of the agreement (as at 1 July 2017)
underground entry level employees (category 4 employees) will
receive a total guaranteed wage of close to R14 000.
Guaranteed pay excludes bonuses and includes: basic pay,
service increments, average overtime and allowances, as well
as a thirteenth cheque, medical and retirement contributions.

Miners, artisans and officials will receive an increase in
their standard rate of pay of 6% back-dated to 1 July 2015.
Increases in the second and third years of the agreement will
be guaranteed at 6%.
Regrettably, the Association of Mineworkers and Construction
Union (AMCU) has rejected the offers made by the company.
Since agreement has been reached with unions representing the
majority of employees at Harmony, the agreement will be
extended to all employees.

For more details contact:

Henrika Ninham
Investor Relations Manager
On +27 (0)82 759 1775

Marian van der Walt
Executive: Corporate and Investor Relations
+27(0) 82 888 1242

Johannesburg, South Africa
2 October 2015

J.P. Morgan Equities South Africa Proprietary Limited

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