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Xstrata reaches Esop agreement with NUM
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2nd November 2011
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JOHANNESBURG (miningweekly.com) – Diversified miner Xstrata has reached an agreement with the National Union of Mineworkers (NUM) over an Employee Share Ownership Programme (Esop), the Department of Mineral Resource (DMR) said on Wednesday.

Xstrata agreed to apply the principle of equality in its allocations in the Esop, after it initially wanted to allocate dividends proportionally to workers in the Patterson grades A to C, while grades D to F, which comprise management, were expressly excluded from the scheme.

The parties also agreed that the DMR, which brokered deal, would recognise the Xstrata Esop as compliant with the Mining Charter requirements, and give Xstrata the necessary credits to meet its 26% black economic-empowerment ownership obligations across both its coal and alloys divisions.

“We applaud both NUM and Xstrata on the cooperative spirit that they demonstrated during these negotiations in the national interest”, special adviser to Minister Susan Shabangu and mediator in the dispute Advocate Sandile Nogxina said.

The parties met over the past seven days in discussions facilitated by the DMR.

NUM members downed tools on October 17 over the disputed Esop. The strike was suspended on October 26, after Nogxina intervened in the matter.

Edited by: Mariaan Webb

 

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