HomeNewsRetrenchment packages for Lily mine workers finalised with trade union

Retrenchment packages for Lily mine workers finalised with trade union

According to Solidarity General Secretary Gideon du Plessis, the agreement comes after week-long negotiations and entails that Lily mine workers will receive salary payments until the end of May and that their salaries for the months of April and May will be paid out as soon as possible, but no later than 30 June 2016.

[quote]Workers who were trapped underground at the time of the mining accident on 5 February 2016 will receive a goodwill payment of R50 000 by 30 July 2016.

According to Du Plessis, R32 million is needed to pay the workers’ unpaid remuneration from February 2016 to the end of May 2016. “Although this agreement may bring short-term relief for the workers applying for it, the poverty into which the workers have already been plunged could worsen if urgent funding cannot be found to pay the packages and all the unpaid salaries of the workers,” Du Plessis warned.

Creditors support business plan

“The almost 180 creditors of the beleaguered Lily mine mining company also voted in favour of the business rescue practitioner’s business plan this afternoon. In terms of this plan, initial funding of approximately R200 million is needed to get the mine back into production by June 2017,” Du Plessis explained.

“In terms of the business plan, the workers will receive 100% of all the unpaid money and concurrent creditors will receive 30 cents in the rand. Payment should take place by the end of May 2017,” Du Plessis said.