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Ergo strike ends as DRDGold, union sign wage deal

10th October 2013

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Dual-listed DRDGold has signed a two-year wage settlement with the National Union of Mineworkers (NUM), ending a two-day strike by some 600 employees at the company’s Ergo operations on the East Rand.

In terms of the settlement, which covers the 2013 and 2014 calendar years, entry-level employees in job categories 4 and 5 would receive a 10% basic wage increase in year one and an 8% increase in year two.

Employees in job categories 6 and 7 would receive a 9% basic wage increase in year one and a 7.5% increase in year two, while employees in job categories 8 to 15 would receive an 8% increase in year one and a 7.5% increase in year two.

The implementation of the settlement would translate into an 8.84% increase in the company’s yearly wage bill, amounting to about R21-million a year.

CEO Niël Pretorius said in a statement on Thursday that the higher increases at the lower end could be accommodated within budget parameters by tapering increases for middle and senior management for the 2014 calendar year.

Employees who had gone on strike at Ergo had started returning to work at the start of the night shift on October 9, and the strike was not expected to have had any material impact on production.

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Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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