JOHANNESBURG, August 12 /PRNewswire-FirstCall/ -- Gold Fields Limited (JSE:GFIJSE:NYSE:JSE:GFI) is pleased to announce that it yesterday finalised a two-year wage agreement with Unions and Associations, effectively bringing to an end the strike that commenced with the evening shift on Sunday, 7 August 2005. This settlement was reached as part of the industry-wide negotiations coordinated by the South African Chamber of Mines. All employees are expected to return to work today, Friday, 12 August 2005. While the settlement for different categories of employees range between 6% and 7%, the weighted impact will be a 6.5% increase in the salary bill of the Group's South African operations for F2006, and for F2007 CPIX plus 1%, or a minimum of 6%, for the lowest paid employees and CPIX plus 1%, or a minimum of 5,5% for the rest. Ian Cockerill, Chief Executive Officer of Gold Fields said: "I am pleased that a mutually acceptable wage increase has been agreed for Gold Fields. However, moving forward it will be essential for all parties to recognise that we will have to think creatively such that we can ameliorate the impact of these above inflation increases and not jeopardise the long term sustainability of our operations." Gold Fields has a range of cost savings and productivity improvement initiatives in place across all of its operations, through which to mitigate upward cost pressures. Because labour costs account for approximately 50% of total costs on the South African operations, the impact of this salary increase on total production costs will be approximately 3%. http://www.goldfields.co.za/ DATASOURCE: Gold Fields Limited CONTACT: Enquires: South Africa, Willie Jacobsz, Tel +27-11-644-2630, Fax +27-11-484-0639; Nerina Bodasing, Tel +27-11-644-2460, Fax +27-11-484-0639; North America, Cheryl A Martin, Tel +1-303-796-8683, Fax +1-303-796-8293

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