[miningmx.com] — GOLD FIELDS and the National Union of Mineworkers
(NUM) on Tuesday settled their differences over working conditions and an operational
model at the company’s South Deep mine, providing one exception to an otherwise
worsening labour relations landscape in South Africa’s mining industry.
The agreement also lifted uncertainty over some 2,300 jobs, around 74% of the
mine’s current workforce, which were under the cloud of a Section 189 process. In
addition, Gold Fields said the new operating model would create another 400 jobs by
the time the mine reached full production of 700,000 ounces per year in 2015.
The Section 189 process was initially started on August 2, a week before a strike by
3,000 rock drill operators at Lonmin’s Marikana ignited a chain of unprotected strikes
across South Africa’s mining industry.
Some 24,000 workers remain on strike at the company’s KDC West and Beatrix
operations.
South Deep, the last of the unmined gold treasures to be offered up by the West
Witwatersrand gold fields, is the only South African gold project included in Gold
Fields’ strategy to take group gold production to five million ounces by 2015. By that
time, South African assets would contribute 40% of the group’s total gold production,
from 49% today.
According to Gold Fields spokesperson Sven Lunsche, the settlement would cost Gold
Fields some R170m up-front in return for improved productivity and performance
commitments from the workforce.
Among some of the key elements of the agreement, all underground operational
personnel in the lower job categories would go onto a 12-hour rotation shift structure
in cycles of four days. This implies a worker will work for four days, have four days
off, followed by four nights on and four nights off.
Also, from 2013, the Christmas break would start on December 23, translating into an
effective 12 day Christmas break.
“The benefits of this agreement are that South Deep will have five more working
hours per day, which is a 25% improvement,’ read a company statement. “In
addition, South Deep will have seven more production days per year. Employees will
on average work 50 days less per year.’
In addition, an existing bonus scheme for underground employees would be
discontinued and a new, uncapped productivity linked bonus scheme would be
implemented.
“The majority of workers would earn more than they do now if they meet and exceed
targets,’ said Lunsche. He added that the company didn’t expect the current wave of
strikes to spread to South Deep, saying the mine largely employed skilled and semi-
skilled workers due to its mechanised structure.
“Their salaries are already better than the rest of the industry,’ he said, adding that
the agreement has resolved all outstanding issues between the union and the group
dating back to a strike of 2010.
