JOHANNESBURG, Aug. 2, 2012 /CNW/ - Gold Fields Limited (Gold
Fields) (JSE, NYSE, NASDAQ Dubai: GFI) announces that its South
Deep Joint Venture ("South Deep") has entered a formal consultation
process with the National Union of Mineworkers ("NUM") and other
affected employees who are not members of a recognised trade union
("affected unaffiliated employees") at South Deep via a Section 189
(3) notice.
South Deep management has been engaged in negotiations with
trade unions for several months to reach agreement on a proposed
new operating model, which, if implemented, would improve
productivity and performance at South Deep in line with
international best practice to the benefit of all stakeholders.
During these negotiations South Deep made several offers to the
trade unions which included attractive remuneration and benefit
packages linked to the adoption of the new operating model. The
productivity measures that South Deep is striving for will not only
secure current jobs but allow the mine to create an additional 400
full-time positions at South Deep in the immediate short term.
This proposed new operating model defines strategic choices on
labour productivity, equipment and maintenance, mine design and
infrastructure. To implement this model, there are six changes
which benefit employees:
- Changing the shift arrangements to allow for 3.5 hours more
face time a day to achieve improved production results and provide
employees with 43 more days off per year
- Introducing a new Total Rewards System, which appropriately
incentivises employees who meet and exceed their targets
safely
- Adjusting the grading system to bring it into line with the
rest of the mining industry
- Achieving greater mining flexibility through selective
outsourcing arrangements
- Providing for improved maintenance through working arrangements
with Original Equipment Manufacturers (OEMs)
- Aligning policies and procedures to Gold Fields and industry
best practice
Peter Turner, Executive VP for
the Gold Fields South African Region, said: "Unfortunately, no
agreement could be reached with the NUM on the implementation of
these changes. We believe this operating model is in the best
interests of the vast majority of employees. South Deep is in
a growth phase and with these changes we can create an additional
1500 jobs when the mine is in full production."
Agreement was reached with UASA, whose members will not be
affected by this process. About 330 employees have accepted the
final offer by South Deep and approximately 2,384 underground
workers are affected by the Section 189 notice.
South Deep is an important and strategic growth asset for Gold
Fields and the South African mining industry, with gold reserves to
run beyond 2070. Gold Fields is committed to a process that ensures
that South Deep is managed optimally and adheres to the principles
of good governance and sound labour practice to create
best-in-class operating conditions.
Turner concluded: "Our proposals not only create new jobs but
secure existing ones at South Deep. We have developed an operating
model that will be beneficial to the mine and we require employees
to work within this framework. We remain hopeful that during the 60
day consultation process we will be able to agree on a way forward
that will be in the best interests of all stakeholders."
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of
gold with attributable annualised production of 3.5 million gold
equivalent ounces from eight operating mines in Australia, Ghana, Peru
and South Africa. Gold Fields also
has an extensive and diverse global growth pipeline with four major
projects in resource development and feasibility, with construction
decisions expected in the next 18 to 24 months. Gold Fields
has total attributable gold equivalent Mineral Reserves of 80.6
million ounces and Mineral Resources of 217 million ounces. Gold
Fields is listed on the JSE Limited (primary listing), the New York
Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in
Brussels (NYX) and the Swiss
Exchange (SWX).
Sponsor: J.P. Morgan Equities Limited
SOURCE Gold Fields Limited