AngloGold mulling strike ultimatum

2012-10-17 20:45

London - AngloGold Ashanti [JSE:ANG] could make a decision next week on whether to follow other miners and issue striking workers with an ultimatum to return to work or be sacked, its chief executive said on Wednesday.

The country has been swept by a wave of often violent industrial action in the last two months and some 35 000 employees, including contractors, at AngloGold's mines have been striking illegally since September.

Other mining companies have responded to the wildcat action by issuing ultimatums to their employees, but AngloGold boss Mark Cutifani said the company had not yet decided whether to follow suite.

"We shall see how events unfold over the next few days. We'll make a judgement on that next week," he told Reuters in an interview on the sidelines of a conference in London.

Gold Fields [JSE:GFI] has told the majority of its striking miners that they have until Thursday to return to work or face immediate dismissal.

Cutifani said AngloGold would be watching the situation carefully in the coming days.

He added that while a decision could come next week, the company would not be locked in to any timeframe given the delicate nature of the situation.

"It is very clear to us that the majority of people want to come to work and they've been prevented to come to work by people that are causing intimidation, So we're thinking very carefully about where we go from here," he said.

AngloGold has maintained a constructive dialogue with "most" of its employees, Cutifani said, declining to give an update on the company's full-year production guidance beyond repeating that its weekly output was taking a 32 000 ounce hit.

Cutifani repeated a warning made by the company earlier in October, that a prolonged strike could prompt a reduction of its South African operations earlier than planned.

"We don't know what we'll be going back into. If the repair costs to recover those areas are too significant, then we won't go back and so there will be immediate downsizing."

  • abongile.ntintili - 2012-10-18 06:51

    My suggestion is The Management of Anglo Gold must add the money for their employees even if its not that amount they want atleast the basic salary must start at R10.000 becouse they are working very hard they deserve that money

      abongile.ntintili - 2012-10-18 07:05

      The Managent must bear in mind that The Western Deep level is the deepest mine in the world, They are using 3 lift 2 go down 2 the station n again they Travell myb 4 an hour to their working place so at their Family must get their sumthing after death so R4000 is nothing for them they can't even provide needs their Families so PLEASE you must do sumthing about the increase not Dismisal

      denis.dendrinos - 2012-10-18 09:08

      you don;t get it do you abongile? They are on the verge of closing the mine - the miners have lost their leverage!

  • themba.thwala.98 - 2012-10-18 07:00

    I say mechanise and fire the hooligans so that they can sober up and direct their anger at the right target: the ANC thieves who promised “A better life for All” but after getting the votes decided that only they - as ANC leaders and their friends and families - deserve and must live “A better life.”

  • pieter.pretorius.106 - 2012-10-18 07:47

    It is time for South African mines to mechanize their mines. Why would you employ 20,000 people and put up with this crap if you can do the same work with 500 people. The people do not realize that South African companies like Anglo are actually huge charity organizations who rather employ people than mechanize, but the thanx they get for that is a spit in the face. That is what you get when you try and help others. I suggest over the next 5 years gradually implement mechanization and get rid of these problem makers.

  • kagiso.gwangwa.754 - 2012-10-18 07:51

    Mine managmnt mst relize this cuntry belong to us indigenus peoples. Hand it back to us.

  • denis.dendrinos - 2012-10-18 09:05

    "We don't know what we'll be going back into. If the repair costs to recover those areas are too significant, then we won't go back and so there will be immediate downsizing." And there you have it ladies and gents - immediate job loses, loses of tax revenue and investment.

  • lepoka.seboko - 2012-10-18 17:01

    Anglo Gold Ashanti we wnt R18500 asiguquki tuu

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