Final Ultimatum for Unlawful Strikers at Gold Fields to Return to
Work or Face Dismissal
JOHANNESBURG, October 16, 2012 /PRNewswire/ --
Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI)
regret to advise that approximately 11,000 of the 14,300 employees
at KDC West (formerly Driefontein Gold Mine) on strike since 9
September; the full employee body of approximately 2,800 employees
at the number 4 Shaft of the Beatrix Gold Mine (formerly Oryx Gold
Mine) on strike since 21 September; and approximately 8,500 of
12,400 employees at KDC East (formerly Kloof Gold Mine) on strike
since 14 October; remain engaged in unlawful and unprotected
strikes (a total of 23,540 out of 35,700 employees).
The striking workers have rejected the settlement proposal which
was made by the Chamber of Mines to the NUM, Solidarity and UASA
last week.
At the numbers 1, 2 and 3 Shafts at the Beatrix Mine in the Free
State there have been positive developments in that the majority of
employees have reported for duty this morning. It is too early to
say if the strike is over but we continue to monitor the situation
and will make an announcement in due course.
After considerable discussion and thought, and with the full
support of the Board of Directors, Gold Fields has this morning
issued a final ultimatum to the employees still on strike at KDC
West and Beatrix, to present themselves for work by no later than
14h00, Thursday, 18 October, 2012, or
face immediate dismissal.
The settlement proposal referred to above will apply to all
employees who return to work by that time.
The company has also applied for an interdict at KDC East.
Nick Holland, Chief Executive
Officer of Gold Fields, said: "Particularly disturbing is that in
the past few days we have seen a significant escalation in
lawlessness, including damage to public and private property,
widespread intimidation, including many cases of personal violence
and several of attempted murder. Over the weekend we saw strikers
invade and ransack the police station in Westonaria and as recently
as last night the driver of a company vehicle was stopped, pulled
from his vehicle, seriously assaulted, and the vehicle set alight.
Security personnel who attended the scene were fired on with live
ammunition. Such behaviour is totally unacceptable."
Holland added that despite this, Gold Fields has continued to
provide food, medical services and housing to workers engaged in
the unprotected strikes, and has acted with the greatest
circumspection and restraint in order to maintain the peace and
safety of employees.
The compound impact of the unprotected strikes to date has been
a loss of approximately 65,000 ounces of gold production and R1.2
billion of revenue.
In addition, every day that the operations stand idle, further
infrastructural damage takes place and working places become more
unsafe, thereby requiring costly rehabilitation and time-consuming
maintenance to ensure the safety of employees when normal
operations resume.
Gold Fields has secured Court Interdicts declaring the strikes
unlawful and ordering striking employees to return to work. The
company has also embarked on a comprehensive communication campaign
to encourage striking employees to observe the court orders, and
has issued ultimatums for workers to return to work. All of
these requests have been ignored. Striking employees and their
representatives have been given sufficient opportunities to make
representations as to why they should not be dismissed, all of
which have also been ignored.
Holland said that, without re-opening wage negotiations and
within the ambit of the existing collective wage agreements, and in
addition to the 9% to 10% wage increase already implemented in
July 2012, the company, through the
Chamber of Mines process referred to above, made a very reasonable
settlement proposal. This included an offer to raise the
entry level wage rate in the industry; pay an additional skills
allowance to rock drill operators; create a new category for loco,
loader, winch and water jet operators and further increase their
remuneration; as well as increase the pay for all affected
employees by a further 2%.
Holland stated, "We believe that the company has been more than
reasonable in the face of all of these challenges and has done
everything possible to deal with striking employees' concerns, but
they continue to refuse to return to work; maintain an
uncompromising and hard-line attitude; and foster violence,
intimidation and damage to property.
Gold Fields can no longer tolerate the growing state of
lawlessness which, in some instances, is approaching anarchy. We
intend to act decisively to bring these unlawful strikes to an
end."
Holland concluded: "While taking these steps to restore
law and order and secure the future of our mines, and our
employees' livelihoods, we remain totally committed to acting with
restraint and, with the assistance of public safety officials, to
maintain the peace and safety of all of our people.
It is incumbent on all people in leadership positions to now act
boldly to bring to a close this infamous episode in our labour
relations history. Failure to do so could have unimaginable
consequences, not only for the mining industry, but for the whole
of South Africa."
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
Enquiries
Willie Jacobsz
Tel: +27-11-562-9775
Mobile: +27-82-971-9238
Email: Willie.Jacobsz@goldfields.co.za
SOURCE Gold Fields Limited