Gold Fields [JSE:GFI] has presented a new offer to
the National Union of Mineworkers in an attempt to end the union’s almost four-week strike
against retrenchments, but a union official says it is unlikely to be
accepted.
The company is offering a “sweetener” to
the retrenchment package. It has also proposed to provide
sacked employees with skills training and make provision for a "call-back" option, which will allow them to be first in line to be reemployed if opportunities
arise, provided they match the requisite skill set.
The union has until 17:00 on Friday to
accept the offer before it lapses.
Gold Fields announced a restructuring plan
in August for its loss making South Deep mine in Westonaria, west of
Johannesburg. The NUM downed tools on November 2 in protest against
1 082 employees and 420 contractors losing their positions, following the Section 189 process facilitated by the Commission for
Conciliation, Mediation and Arbitration.
Speaking to the media in Sandton on Wednesday, Gold Fields CEO Nick Holland
said he is unable to foresee how long the industrial action would continue if
the offer isn’t accepted by Friday. The market has already been informed there will be no further gold production
from South Deep for the remainder of the year.
“There’s no turning back from the
process,” Holland said, adding that the retrenchments were
undertaken as a last resort to save the remaining 4 000 jobs at the
operation.
South Deep is the world's second largest gold-bearing ore mine,
but has been unprofitable for a decade, due to deep deposits and rising costs.
‘No new offer’
NUM branch secretary at South Deep Thulani Mashibini told Fin24
that nothing had materially changed in the mining group's latest offer, and the union
would reject it.
“We want to meet with Gold Fields to come to a reasonably
acceptable number of retrenchments."
Mashibini said the union did not have an 'optimum' level of job
losses at Gold Fields. This would be determined by further discussions with
the gold company.
He agreed with Minister of Mineral Resources Gwede Mantashe who
said on Monday, following a meeting with Gold Fields, that the firm is not acting
in good faith.
“We were the first to say that Gold Fields is engaging a tickbox
exercise [during the Section 189 process]…they are not interested in avoidance
measures,” Mashibini said.
Holland took a careful line when commenting on Mantashe’ s
criticism, thanking the minister for taking the time to discuss the
situation. "I understand there
is significant pressure to try get the [mining] industry to grow and not
to contract."
R70m in lost wages
Gold Fields has not been able to produce since the strike began,
resulting in a cash burn of around R6m per day and R70m in lost wages.
Holland said the company will still need to calculate the extent of infrastructure damage during strike action. He complained that a court order against
violence and intimidation was defied when maintenance teams were
denied access to operations.
Gold Fields has received messages from 1 900 employees who
want to go back to work, added Holland, which he said indicated that a majority of employees were against
the prolonged industrial action ahead of what promises to be a bleak festive
season for workers.
The company’s share price has dropped approximately 16% since August 13, ahead of the restructuring announcement. Holland said this reflected a number of factors including investors’
uncertainty as to whether South Deep could be returned to profitability.
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