JOHANNESBURG, October 2, 2012 /PRNewswire/ --
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI)
is pleased to announce that it has reached a formal agreement with
the National Union of Mineworkers ("NUM") to implement a new
operating model at its developing South Deep Gold Mine ("South
Deep") near Johannesburg in
South Africa.
Gold Fields CEO Nick Holland
praised the national, regional and branch leadership of the NUM,
which played a critical role in securing this ground-breaking
agreement in a challenging environment: "This agreement will define
the future of South Deep and position it to become one of the most
modern underground mechanised mines both locally and
internationally. The agreement shows that there is indeed room for
constructive collaboration in South African labour relations."
The new South Deep operating model will not only secure current
jobs but allow the mine to create an additional 400 full-time
positions at the mine. It should improve productivity and
performance in order for the mine to approach international best
practice.
The new operating model was previously agreed to by UASA. Now
that the parties have agreed on the key aspects of the new
operating model, South Deep has withdrawn the Section 189 notice
issued to the NUM on 2 August
2012.
The key elements of the agreement are as follows:
New Full Calendar Operations agreement
("FULCO")
- All underground operational personnel in job categories A4 to
C5 will go onto a new 4 x 4, 12 hour rotation shift structure
(which means 4 days on, 4 days off, 4 nights on, 4 nights off, in
12 hour shifts).
- The current agreement in regard to Christmas breaks will remain
in place for December 2012. In future
years the operation will shut down for 8 days starting on 23
December each year, translating into an effective 12 day Christmas
break for each FULCO employee.
- To address concerns about possible fatigue resulting from the
new shift structure, a comprehensive fatigue management system will
be introduced, which includes a one hour mid-shift break during
which food and drinks will be provided, in addition to that
provided with the commencement of the shift.
The benefits of this agreement are that South Deep will have
five more working hours per day, which is a 25% improvement. In
addition South Deep will have seven more production days per year.
Employees will on average work 50 days less per year.
Total Rewards Scheme
- The existing bonus schemes for underground employees will be
discontinued and a new, uncapped productivity linked bonus scheme
will be implemented, providing significant incentives for improved
performance.
- The payment of market allowances for operators and artisans in
the TM3 (mechanised) section will be discontinued for which
affected employees will receive up-front compensation.
Through the new total rewards scheme, compensation will be
aligned with local best practice benchmarks, while the new bonus
scheme will enable employees who exceed production targets, to earn
significantly more than they do today.
Grading system
- South Deep's grading system will be aligned with the nature of
the work performed and with industry benchmarks. In addition, our
grading system will allow for appropriate career progressions. An
independent expert will be appointed to verify the new grading
system.
- The new grading system will only be implemented for new
employees. Existing employees will remain on their existing grades
and will retain their current remuneration and benefits.
Engagement structures and alignment of
policies with that of the Gold Fields Group
- The parties agreed to implement all the key engagement
structures that are currently in effect in the rest of the Gold
Fields group. These include Health & Safety Committees, Shaft
Leadership Forum, Operational Leadership Forum, Skills Development
Forum, Employee Equity Forum, Social & Labour Plan and the
Future Forum. The Gold Fields disciplinary code and procedures will
also be implemented at South Deep.
The new agreement will result in an up-front cost to South Deep
of approximately R170 million.
"This is an appropriate investment in generating a new operating
model, which will underpin the significant potential of South Deep.
It will lead to more productive working arrangements, line-of-sight
bonus system that align employees with business objectives, as well
as competitive grading and compensation systems," Holland said.
"This is a win-win arrangement for the mine and all affected
employees who will receive upfront payments, while the new working
arrangements will enable them to participate in a joint reward
system that is equal to or better than what they are currently
receiving. Furthermore, South Deep will work with the trade unions
to jointly develop improved housing arrangements, medical and
wellness benefits as well as more efficient underground transport
arrangements, amongst others," Holland added.
This agreement has resolved all outstanding and unresolved
issues between the NUM and South Deep Management dating back to the
strike in 2010.
"This agreement is reflective of our desire to establish South
Deep as a world class mine for the next 50 years and more, to the
benefit of all its stakeholders," Holland said.
South Deep is an important and strategic growth asset for Gold
Fields and the South African mining industry, with production
scheduled to ramp up to a run-rate of 700,000 ounces a year by the
end of 2015, and a life of mine in excess of 50 years.
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
Investor Enquiries:
Willie Jacobsz
Senior Vice President
Head of Investor Relations and Corporate Affairs
USA Cell: +1-857-241-7127
RSA Cell: +27-82-971-9238
Email: willie.jacobsz@goldfields.co.za
Media Enquiries
Sven Lunsche
Vice President: Corporate Affairs
Cell: +27-83-260-9279
Email: sven.lunsche@goldfields.co.za
SOURCE Gold Fields Limited