Xstrata, Num agree to end dispute

Johannesburg - The National Union of Mineworkers (Num) said on Tuesday it has agreed with Xstrata to resolve within seven days a dispute over an employee share ownership programme that has disrupted production of coal and alloys over the past week.

Thousands of workers have been on strike for over a week demanding equal compensation under the proposed programme, regardless of rank. The company’s plan was to compensate employees based on their level.

Following a meeting between the union and the company, the Num said it would consult its members, but the strike would continue for now.

“The union will go and brief its members on the outcome of the meeting and see whether the strike may be suspended, but for now a decision to suspend the strike has not been made,” spokesperson Lesiba Seshoka told Reuters.

Xstrata last week withdrew its proposed share policy due to the strike. The union said the company had promised to reestablish the programme.

Xstrata could not immediately be reached for comment.

Around 5 180 workers or 43% of Xstrata’s total workforce in South Africa are members of the Num.

The company has said that its coal operations were severely affected by the strike and there was some impact on its alloys operations, although supplies to customers were continuing.

The company’s South African operations produced 8.4 million tonnes of thermal coal and 581 000 tonnes of ferrochrome, used to make stainless steel, in the six months to the end of June.

The alloys operations also produce vanadium and platinum group metals.