Publications
Partners
Johannesburg - Global miner Xstrata said on Wednesday it has reached a deal with the National Union of Mineworkers over an employee share ownership scheme, ending a dispute that has disrupted its coal and alloys operations.
Xstrata said it agreed to compensate workers equally under the scheme, irrespective of their rank, after the government said the programme would allow Xstrata to meet its 26% black ownership target as required by law.
Xstrata agreed to allocate shares to employees equally and NUM undertook to call off a strike over the issue, said Sandile Nogxina, special adviser to Mineral Resources Minister Susan Shabangu.
Xstrata said it agreed to compensate workers equally under the scheme, irrespective of their rank, after the government said the programme would allow Xstrata to meet its 26% black ownership target as required by law.
Xstrata agreed to allocate shares to employees equally and NUM undertook to call off a strike over the issue, said Sandile Nogxina, special adviser to Mineral Resources Minister Susan Shabangu.
"The department of mineral resources will recognise the Xstrata ESOP as compliant with the Mining Charter requirements."
Nogxina said the department would give Xstrata the necessary credits to meet its 26 percent BEE ownership obligations across both its coal and alloys divisions.
Xstrata introduced the employee share ownership plan which offered workers shares equivalent to their working grade.
NUM rejected the offer and demanded that all members receive an equal number of shares regardless of their position in the company.
The talks were facilitated by the department of mineral resources.
