Pan African Resources PLC has concluded a significant five-year wage agreement. The company also celebrates the maturation of its Barberton Mines Employee Share Ownership Plan (ESOP).
Wage Agreement Overview
Pan African has finalized a five-year wage agreement with the National Union of Mineworkers (NUM). This agreement is for the employees at its Barberton Mines operations.
Key Details of the Agreement
The agreement covers wage increases and other service conditions. It ensures an average annual increase of approximately 5.3% per annum from June 2024 to June 2029.
| Year | Average Annual Increase (%) |
|---|---|
| 2024 | 5.3 |
| 2025 | 5.3 |
| 2026 | 5.3 |
| 2027 | 5.3 |
| 2028 | 5.3 |
UASA Agreement Update
The current agreement with UASA, another union at Barberton Mines, is valid until June 2026. This agreement includes a 5.0% or CPI increase, whichever is higher, capped at 6%.
Re-negotiation Clause
The UASA agreement has a re-negotiation clause if CPI is below 4% or above 7.5%.
Barberton Mines’ ESOP Maturation
The Barberton Mines’ ESOP scheme has reached its maturity, providing substantial benefits to employees.
Early Settlement
Originally set to mature on June 30, 2024, an early settlement was negotiated. The scheme settled on March 31, 2024.
Dividends and Final Payments
During the scheme’s ten-year term, dividends of over R40 million were paid. Final maturity benefits were distributed in May 2024.
Employee Participation
More than 2,200 employees qualified for the final payments. Payments were based on years of service.
| Total Dividends Paid (R million) | Final Maturity Benefits Paid (May 2024) | Qualified Employees |
|---|---|---|
| 40 | Yes | 2,200+ |
CEO’s Statement
Cobus Loots, CEO of Pan African, expressed satisfaction with the agreements. “We are pleased to have entered into multi-year wage agreements,” said Loots.
Benefits to Employees
Loots highlighted the tangible benefits realized by employees from the ESOP maturation. “The maturation of Barberton’s ESOP has realized tangible benefits to all its participants,” he added.
Conclusion
Pan African’s new wage agreement and ESOP maturation mark significant milestones. The company continues to prioritize employee welfare and operational stability.