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Gold One signs wage deal with workers

Oct 31 2012 07:42 Reuters

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Johannesburg - Gold One International [JSE:GDO] has signed a two year wage agreement with the National Union of Mineworkers (NUM)‚ following the company's Modder East workforce mandating NUM to accept management's final offer‚ the gold miner said on Wednesday.

On 11 June the company dismissed 1 044 of its workers for participating in illegal industrial action. Subsequent to the workers' mass dismissal‚ the company engaged the services of Jongingozi Outsourcing‚ a contract mining company‚ to assist in normalising Modder East's production.

The two year wage deal‚ effective for the period 1 January 2013 to 31 December 2014‚ will see Gold One sign on all contract labour‚ providing a period of stability for the mine‚ it said in a statement.

The wage agreement applies to all Paterson band A and B employees‚ regardless of union affiliation. Salaries will be increased by 10% for Category A and B Lower Employees and 8% for B Upper Employees in 2013 and in 2014.

Following the transition of Modder East as it ramps up from development status to full production‚ substantial increases to minimum wages for surface and underground categories will also be implemented to bring the operation in line with the industry.

Newly introduced terms include a maternity leave provision‚ physical transport provided by the company‚ a medical allowance‚ and a 13th cheque dependent on the achievement of annual production targets.

The agreement further provides for increases to: basic salaries; critical skills salaries; monthly living out allowances; and company provident fund contributions‚ it said.

"With Modder East's three year wage agreement coming to an end in December 2012‚ I am extremely pleased that we have been able to use this current disruptive period to successfully renegotiate a new two year wage agreement. This is a milestone achievement and all parties should be commended on concluding the wage deal and demonstrating our joint ability to align on goals of mutual interest. This outcome will see normality and long term stability return to the Modder East Operation as it ramps up to pre-strike production levels during the December 2012 quarter‚" said Gold One President and CEO Neal Froneman.

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