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Northam strikes not yet resolved, review of bonus structure under way

15th April 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Northam Platinum on Monday agreed to review the application of the Zondereinde mine's productivity bonus system, as the work stoppage by rock-drill operators (RDOs) entered its third week.

About 580 RDOs have been going underground and reporting for duty “but they have not been drilling” since April 2, demanding a 38% increase to their monthly production bonuses, which could account for about 40% of a workers' remuneration.

The awarding of production bonuses were implemented by Northam as part of an incentive scheme in 2010 and did not form part of wage negotiations.

The strike has, to date, cost the platinum producer about 10 600 oz of metal-in-concentrate production and R122.1-million in revenue.

The company continued to engage the National Union of Mineworkers (NUM), which represented about 77% of the 9 000-strong workforce, at national and regional level; but the company urged workers to return to work to avoid potential dismissals.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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