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Coal of Africa miners get 26% increase

Nov 02 2012 08:53

Johannesburg - Coal of Africa [JSE:CZA] (CoAL) advised on Friday that the National Union of Mineworkers (NUM) called off the wage-related strike at its Mooiplaats Colliery on October 30.

The decision follows a meeting held on Monday October 29 between NUM senior representatives and CoAL to resolve the strike action.

The employees returned to work on October 31‚ and the collective bargaining unit which constitutes 27% of Mooiplaats Colliery's monthly salary bill will receive an increase of 26% cost to company inclusive of medical aid assistance‚ housing allowance as well as shift and underground allowances with effect from July 1 2012‚ the company said.

The increase from the original offer of 22% is due to the reallocation of certain allowances into the basic salary component. The settlement translates to an increase of about 1% on Mooiplaats' total cost per saleable tonne.

CoAL CEO John Wallington said‚ "As Mooiplaats colliery staff return to work‚ we have initiated management actions that will reduce operational costs and improve efficiencies at the operation.

"Management is fully aware of the impact the strike has had on the profitability of the mine and is implementing various initiatives to address the long-term viability of the operation. We will complete the full review and restructuring of the colliery that commenced prior to the strike action."

coal of africa  |  mining unrest


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