POLITICS

AMCU declares its intention to strike - 5 mining companies

Gold miners say that this will be in breach of the September 2013 wage agreement, interdict will be sought

Regulatory Release - Lonmin receives strike notice from AMCU

20 January 2014

The Association of Mineworkers and Construction Union ("AMCU") has today issued Lonmin Plc ("Lonmin") with a 48-hour notice of its intention to embark upon protected strike action. According to the notice received from AMCU, the strike will commence on Thursday 23 January 2014.

Lonmin met with majority union AMCU at the Commission of Conciliation, Mediation and Arbitration (CCMA) on 10 December 2013, as part of ongoing attempts to reach a sustainable resolution to the wage demands. Regrettably, no resolution was achieved and the Commissioner issued the certificate of non-resolution. South African labour relations legislation now allows AMCU to embark upon legal strike action, to which the "no work - no pay" principle will apply.

Lonmin remains committed to finding a positive and sustainable resolution to the dispute in the interests of all its stakeholders and management continues to engage at all levels to seek agreement.

Statement issued by Lonmin through the JSE SENS Service, January 20 2014

Harmony's Kusasalethu and Masimong mines receive strike notice from AMCU

Harmony Gold Mining Company Limited ("Harmony" and/or "the Company") confirms that it has received a notice from the Association of Mineworkers and Construction Union (AMCU) that the union will embark on a strike as from 23 January 2014 at its Kusasalethu and Masimong mines.

The strike has been called in respect of the 2013 wage negotiations and involves a number of other South African gold producers covered by the industry's collective bargaining structure.

Wage negotiations were concluded on 10 September 2013 when a two-year wage agreement was reached with three of the four unions (NUM, UASA and Solidarity), representing 72% of employees at the time.    While AMCU (representing 17% of employees at that time), participated in the central level negotiations, it refused to accept the agreement.

The September 2013 agreement was made applicable to all employees who form part of the bargaining unit, irrespective of trade union affiliation. These wage increases were backdated to 1 July 2013.  AMCU members have therefore benefited from the outcome of the wage negotiations as well as additional bonus structures that were introduced by Harmony since then.

In terms of the ‘peace clause' contained in the agreement, there can be no strike action about terms and conditions of employment during the existence of the agreement; the issue of conditions of employment has been settled for the duration of the agreement; and no demands may be made during the course of the agreement. Accordingly, any strike action about terms and conditions of employment during the existence of the agreement will be in contravention of the ‘peace clause' and thus unprotected.

Any strike action by AMCU against the gold producers covered in the wage agreement will be opposed and a court interdict will be sought to prevent AMCU from embarking upon strike action. The Chamber of Mines will request that the court rule that the union should be held responsible for any and all damages suffered as a result of strike action.

"We believe that we have reached an agreement that is fair to all and this belief is supported by the fact that all individual employees accepted the increases implemented without rejection. We have made good progress in turning around our operations since the events of 2012 and early 2013, and in ensuring that all employees share in the benefits. We appeal to all AMCU members to continue producing safe, profitable ounces," said Graham Briggs, chief executive officer of Harmony.

Statement issued by Harmony through the JSE SENS Service, January 20 2014

IMPALA PLATINUM LIMITED (IMPALA) RECEIVES STRIKE NOTICE FROM AMCU

Implats wishes to advise stakeholders that the Association of Mineworkers and Construction Union (AMCU) has issued a strike notice to Impala and that strike action will commence at its Rustenburg mining operation from the morning shift on Thursday 23 January 2014.

Impala and AMCU have been engaged in wage negotiations for more than six months. Despite progress in many areas, the parties have not reached agreement on wages and other conditions of employment.

Implats' recently signed a two-year wage agreement with the National Union of Mineworkers (NUM), effective from July 2013, for the Marula and Refining operations. In accordance with this agreement, the minimum guaranteed remuneration for lower category workers will increase by 8,5% in year one and 7,5% in year two.

Implats' Mimosa, Zimplats, Marula, Two Rivers and Refining operations will not be affected by the impending strike action.

The Company remains committed to further engagement and to finding a solution that will secure the sustainability of the business and preserve jobs as far as possible. Impala has taken all reasonable measures to prepare for a possible wage strike to ensure peace, order and stability.

Statement issued by Impala Platinum through the JSE SENS Service, January 20 2014

Sibanye Gold confirms notification from AMCU, of intended strike action at Driefontein

Westonaria, 20 January 2014: Sibanye Gold (JSE: SGL & NYSE: SBGL) advises stakeholders that the Association of Mineworkers and Construction Union (AMCU), has given notice that it will call on its members at Sibanye Gold's Driefontein Operations to strike, starting with the morning shift on Thursday,23 January 2014. Certain mines operated by other South African gold producers have also been issued with strike notices by AMCU.

The AMCU strike notification relates to the 2013 wage negotiations, which were concluded on 10 September 2013, when a two-year wage agreement was reached with three of the four unions (NUM, UASA and Solidarity), representing 72% of unionised gold industry employees at the time. AMCU, which represented 17% of employees at that time, participated in the central level negotiations, but refused to accept the agreement.

Consistent with over 10 years of accepted practice in previous wage negotiations, the September 2013 agreement was extended by the Chamber of Mines and made applicable to all employees who form part of the industry bargaining unit, irrespective of their trade union affiliation. All AMCU members have been recipients of and benefited from the annual increase and other benefits agreed upon in September 2013 and backdated to 1 July 2013.

The strike certificate issued to AMCU by the Council for Conciliation, Mediation and Arbitration, was granted in September 2013, prior to the agreement being made applicable to all employees in the bargaining unit.

The Chamber of Mines, on behalf of the gold producers covered in the wage agreement will immediately be seeking a court interdict to prevent AMCU members from embarking upon strike action. The Chamber of Mines will also request that the court recover the cost of the application from AMCU and that the union be held responsible for any and all damages suffered as a result of strike action.

Statement issued by Sibanye Gold through the JSE SENS Service, January 20 2014

AngloGold Confirms Receipt of Strike Notice at South Africa Mines

 (Johannesburg)--AngloGold Ashanti confirms that the Association of Mineworkers and Construction Union (AMCU) has served notice that it intends to call a strike by its members at the company's South Africa operations, starting Thursday, 23 January 2014. The strike will also affect some mines owned and operated by other large, South African gold producers covered by the industry's collective bargaining structure.

 The strike has been called in respect of the 2013 wage negotiations. These negotiations were concluded on 10 September 2013 when a multi-year agreement was reached between South Africa's major gold producers, represented in a collective bargaining forum by the Chamber of Mines, and three of the four unions (the National Union of Mineworkers, United Association of South Africa and Solidarity), representing 72% of the gold sector's employees at the time. AMCU, which represented about 17% of employees at the time and participated in the central level negotiations, did not accept the agreement.

 The September 2013 agreement was made applicable to all employees who form part of the bargaining unit, irrespective of their trade union affiliation. The agreed increase, of between 7.5% and 8% in the first year, was backdated to 1 July 2013. AMCU members have all benefited from this increase.

 AMCU's certificate applying to this strike was obtained from the Council for Conciliation, Mediation and Arbitration in September 2013, prior to the agreement being made applicable to all employees in the bargaining unit.

 In terms of the ‘peace clause' contained in the existing wage agreement: there can be no strike action regarding terms and conditions of employment during the existence of the agreement; the issue of conditions of employment has been settled for the duration of the agreement; and no demands may be made during the course of the agreement. Accordingly, any strike action about terms and conditions of employment during the existence of the agreement will be in contravention of the ‘peace clause', and thus unprotected.

 Any strike action by AMCU members will be opposed by the gold producers covered in the wage agreement.

Statement issued by Anglo Gold Ashanti through the JSE SENS Service, January 20 2014

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