Home BusinessNUM Rejects Sibanye-Stillwater Wage Offer as Gold Prices Hit Record Highs, Dispute Heads to CCMA

NUM Rejects Sibanye-Stillwater Wage Offer as Gold Prices Hit Record Highs, Dispute Heads to CCMA

by Selinda Phenyo
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NUM Rejects Sibanye-Stillwater Wage Offer as Gold Prices Hit Record Highs, Dispute Heads to CCMA

Johannesburg – Mineworkers at Sibanye-Stillwater have turned down the company’s latest pay deal, calling it an insult amid soaring gold prices and tough living costs. The National Union of Mineworkers (NUM) says its members overwhelmingly rejected the offer, which falls short of their needs. This has led to a deadlock in talks, with the matter now going to the Commission for Conciliation, Mediation and Arbitration (CCMA) for help.


The standoff comes at a time when gold has smashed through the $4,000 an ounce mark for the first time, driven by global worries like the US government shutdown and France’s political mess. Workers feel they deserve a bigger slice of the profits from the precious metal, which has climbed about 50% this year alone.


Other unions like the Association of Mineworkers and Construction Union (AMCU), UASA and Solidarity are also on board, joining NUM in pushing the dispute to the CCMA. This could spark more tension in South Africa’s mining world, which has seen its share of strikes and stoppages in the past.


Details of the Rejected Wage Offer


Sibanye-Stillwater put forward a 4.5% wage hike, plus a R50 bump in the Living Out Allowance and a R30 rise in the medical aid subsidy. But NUM members shot it down, saying it does not match the sharp rise in everyday expenses like food, rent and transport.


NUM spokesperson Livhuwani Mammburu voiced the frustration, pointing out the gap between the offer and the booming gold market. “It’s disturbing that the company is offering this kind of increase while the gold price is doing extremely well in the international market,” he said.


The company runs big gold operations in South Africa, including spots like Driefontein, Kloof and Beatrix. These mines pull out gold under risky conditions deep underground, where workers face dangers like rock falls and poor air quality every day. Last year, in 2024, Sibanye-Stillwater agreed to a one-year deal that gave workers a 5.5% increase or R900 a month, whichever was higher, for lower categories and skilled staff. But now, with gold flying high, unions want more for the long term.


Union’s Demands and Push for Better Conditions


The NUM is asking for a R1,500 monthly wage boost each year for the next three years for workers in categories 4 to 8, and an 8% yearly rise for artisans. They also want paid maternity leave stretched from four months to six months, to help families better.


Mpho Phakedi, NUM general secretary and top negotiator at Sibanye-Stillwater Gold, slammed the offer hard. “The NUM Sibanye-Stillwater Gold branches view this offer as an insult to the hardworking men and women who generate immense wealth for the company under hazardous conditions beneath the earth’s surface,” he said. “The proposed increases do not keep pace with the rising cost of living, and our members deserve better.”


AMCU has echoed these feelings, noting that after five rounds of talks, things hit a wall. They highlighted how bosses got pay bumps up to 39% and big bonuses, while workers get scraps, even as gold sells for over $3,900 an ounce.


In some reports, unions came together with a joint ask for a R1,300 monthly hike for the lowest-paid and 6.5% for others. But the core push is for fair pay that reflects the hard graft and risks in mining. Unions say they will not budge and are ready to fight on.


Gold Prices Soar Amid Global Uncertainty


Gold has been on a tear, hitting an all-time high of nearly $4,060 an ounce on Wednesday. It closed at a record $4,004.40 per ounce after touching $4,014.60 during the day. By Thursday, it was still strong around $3,928 an ounce.


Experts say the rush to gold comes from fears over the US shutdown, unrest in France and shaky economies worldwide. As a safe bet in bad times, gold has jumped 53% in 2025 so far. This boom has fattened Sibanye-Stillwater’s pockets, with gold making up half its earnings in the first half of the year.
For miners, this means the company can afford better wages. Gold mining has boosted South Africa’s economy, but workers often see little of the gains. Unions argue that with prices this high, it’s time to share the wealth fairly.


Background on Sibanye-Stillwater and Past Tensions


Sibanye-Stillwater is a big player in gold, platinum and other metals, with digs in South Africa and the US. It started as Sibanye Gold and grew by buying up outfits like Stillwater Mining. Today, it employs over 80,000 people, mostly here in South Africa, making it a top private boss.


But relations with unions have been rocky. In 2022, a long strike over wages ended with a deal for R850 yearly hikes for entry-level staff. Earlier this year, NUM called for the ousting of CEO Neal Froneman after he slammed South Africa as a failed state and refused to meet union heads. Froneman steps down in September 2025, with Richard Stewart taking over.


Safety woes have also flared up. In May 2025, over 260 workers got stuck underground at Kloof mine due to a hoist glitch, sparking calls for better checks. NUM slammed the company for poor handling and lack of care.


The firm is pushing green moves, like using more renewables by 2025 to cut energy costs and harm to the planet. But workers want these gains to trickle down to pay and perks.


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