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Northam Platinum halts production at ‘tense’ Zondereinde

Northam Platinum halts production at ‘tense’ Zondereinde

Photo by Reuters

16th January 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Northam Platinum has suspended operations at its strike-hit Zondereinde mine, in Limpopo, in a bid to “secure the safety and security of employees and company assets”, the company said on Friday.

“This decision has been taken amidst rising tension at the mine, owing to incidents of intimidation, assault and threats of violence towards nonstriking employees and damage to property on [Thursday],” it said in a statement.

Some 5 200 National Union of Mineworkers (NUM) members embarked on an unprotected strike at the mine on Tuesday evening, protesting what the union described as a “divisive” approach by CEO Paul Dunne, a transgression of employment equity policies, as well as the unfair dismissal of several workers.

Northam on Wednesday obtained an urgent Labour Court interdict to force the striking employees to return to work or risk dismissal, but by Thursday morning only 40% of the striking workforce had returned to work.

NUM spokesperson Livhuwani Mammburu told Mining Weekly Online on Friday that the striking workers had been briefed at a mass meeting on the implications of extending the strike action in light of the interdict, but had elected to continue with the industrial action.

“Workers know of the consequences [of continuing the strike] but will fight until the bitter end. Management can’t be allowed to alter policies that the employees have fought hard for and were agreed to. The mandate to continue with the strike was given to us by the workers – they tell us what to do,” he asserted.

Among the NUM’s claims was that a white female related to GM Danny Gonsalves had been appointed to the company, in breach of its employment equity policy.

“The workers tried all legal and lawful means to communicate with [mine management] over the issue, but were unsuccessful,” said Mammburu.

Northam spokesperson Charmane Russell told Mining Weekly Online that the alleged appointment was, however, not mentioned in the list of grievances submitted to the company.

“We don’t want to have a blow-by-blow exchange with [the] NUM in the media….[but] its demands to management...specifically related to disruptions and sick leave issues. No mention was made of this appointment,” she said.

Russell added that there was “sufficient room” within the current labour legislation to allow for a formal consultation between the parties and, had the union attempted to resolve their grievances through official channels, the Labour Court interdict would not have been granted.

According to Northam, the Zondereinde mine produced around 65% of the group’s yearly production, and production losses as a result of the shutdown would be around 1 000 oz of platinum-group metals a day.

This equated to daily revenue losses of some R11.5-million.

It added that employees would forfeit wages and benefits in the order of R2.4-million a day.

The Zondereinde mine employs 6 600 permanent employees and 2 100 contractors.

“Zondereinde management continues to engage with the NUM in a bid to normalise operations as soon as possible and urges the NUM to take heed of the Peace and Stability Framework for the Mining Industry, signed in February 2013.  

“At the same time, the company will follow disciplinary procedures in respect of employees who failed to heed the direction of the Labour Court to return to work. This could result in dismissals,” it cautioned.

Zondereinde’s smelter operations continued to operate.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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