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Johannesburg - Trade union Solidarity said on Monday that it is considering legal action against Harmony Gold [JSE:HAR] for failing to pay back medical fund deductions amounting to about R4m.
The union was the last to accept the two-year salary increase offer in the gold industry made by the Chamber of Mines.
"The trade union's members accepted the offer, given the current conditions in the gold industry, and in the hope that the agreement will promote the sustainability of the industry," Solidarity said in a statement.
Under the two-year offer, category four and five employees, and rock drill operators, will receive increases of 8%, and other employees 7.5% with effect from July 1.
Employees will also receive inflation-linked increases with effect from July 1 next year, and the monthly living out allowance of R1 640 will increase to R2 000.
Pay deductions
Solidarity general secretary Gideon du Plessis said the union was concerned about pay deductions.
He said Harmony Gold failed to pay back unauthorised medical fund deductions.
"Harmony owes up to R30 000 in reimbursements to some of its employees and approximately R4m in reimbursements to Solidarity members," he said.
The union would not let Harmony Gold's "malicious failure" to make the reimbursement payments hold up the wage agreement, but it would consider alternative legal remedies.
Du Plessis said that signing the agreement in the gold industry as quickly as possible would be in the country's best interests.
On Monday, gold producers said the pay deal was expected to be signed in the next few days.
