[miningmx.com] – GOLD Fields has raised the prospect it could retrench
up to 74% of miners working at its South Deep Joint Venture, equal to 2,384 jobs,
after it failed to reach an agreement on productivity and work-practice changes with
the National Union of Mineworkers (NUM).
UASA, another union at the mine, has agreed to the changes and will be exempt
from a Section 189 process that Gold Fields said today it had initiated.
The proposed changes to the existing continuous operations at the mine include
more time operating at the face per worker in return to more time off, and regrading
certain jobs.
The NUM contends proposed changes will result in a cut in salaries, whereas Gold
Fields believes the new working structure uncaps bonuses and pays a variable wage
based on productivity.
Gold Fields said some 400 jobs would be created in the short-term as a part of the
5,000 jobs South Deep will eventually employ when it reaches a run-rate production
target of 700,000 oz by the close of 2015. The mine produced 58,600 ounces of gold
in the March quarter, or 234,400 ounces on an annualised basis.
Responding to questions in a media call, Gold Fields CEO, Nick Holland, said there
was no immediate risk to South Deep’s 2015 production target. “It’s too early to say
on that,’ he commented, adding that the risk was minimal.
South Deep, the last of the gold treasures to be offered up by the West
Witwatersrand gold fields, is the only South African gold project included in Gold
Fields’ strategy to take group gold production to five million ounces by 2015. By that
time, South African assets will contribute 40% of total gold production from 49%
today (and 62% in 2008), Gold Fields calculated in a recent presentation.
“This is not the situation we started with, but the situation we have ended with,’
said Holland of the negotiation process. “The ball is firmly in the court of the NUM.’
Holland said there would be no production at South Deep while the group was forced
to make retrenchments, but added the company was entitled to hire new employees
once the process was complete.
A 60-day consultation process is now underway. “We are still exploring way to avoid
retrenchments and we would be interested in considering other proposals from the
NUM,’ said Holland.
