HomeGoldGold One strike is over

Gold One strike is over

Gold One CEO
Neal Froneman
Johannesburg, South Africa — MININGREVIEW.COM — 23 April 2010 – The month-long strike at Gold One’s flagship Modder East mine in South Africa is over, with both the company and labour claiming victory. Strikers will return to work on 28 April after the public holiday weekend.

Gold One’s statement came a day after the National Union of Mineworkers had said that agreement on a settlement had been reached and workers were prepared to return to their posts.

Revealing this here, Miningmx.com reports that the company has not revealed how much production it lost during the strike, but it consistently told the market output was at half normal levels, with operations kept ticking over despite 800 out of a 1 000-strong workforce downing tools.

JSE- and ASX-listed Gold One said a three-year wage deal expiring at the end of 2012 had been agreed, and that its original offer tabled ahead of the start of the strike on 23 March had been agreed to by labour after it had been repackaged.

The legal strike was on a no-work/no-pay basis.

“The offer has been re-packaged at the request of the NUM, but the quantum to the company remains the same,” Gold One said.

The average basic salary increase for 2010 is 10%, rising to 11.5% in 2011 and 26% in 2012.

“The increases, coupled with the allowances, will ensure that employees benefit in the expected prosperity of the company,” Gold One said, adding that it had agreed to a living-out allowance, travel allowance and allowances for meal breaks.

The living-out allowance “’ one of the major sticking points in negotiations “’ will be R225 per month for this year and next, rising to R400 a month in 2012.

“My thanks go to those employees who ensured that production continued, thereby putting Gold One in a position to negotiate these increases to a logical conclusion,” said CEO Neal Froneman.