Aim-listed vanadium producer and energy storage solutions provider Bushveld Minerals says five-day-long unprotected industrial action at its Vametco operation has been resolved and that workers are starting to safely return to work.
Bushveld says the unprotected industrial action related to expectations of payments under the employee participation plan (EPP) at Vametco.
However, following discussions between management and the recognised labour union at Vametco – the Association of Mineworkers and Construction Union (AMCU) – an agreement has been reached, following which AMCU asked its members to return to work.
The industrial action was resolved following recognition of the recently signed EPP agreement based on which any EPP payments are determined based on audited results of Vametco and, where applicable, are paid as a function of the company’s profit performance.
Resolution of the issue also recognised loss of earnings relating to production bonuses during the 35-day maintenance programme, in respect of which Bushveld and AMCU have agreed that Vametco will pay each employee a payment of R4 500 (post-tax).
However, a condition of the resolution also stated the principle of “no work, no pay” and the acknowledgement of the illegal nature of the industrial action by implicated workers, as well as recognising Bushveld’s rights in pursuing appropriate remedies thereto.
Going forward, Bushveld says plans are under way to engage with employees on the details of the recently signed EPP agreement, as well as to review its production compensation framework to improve alignment with the company’s operational targets.
In relation to this, the miner also states that care-and-maintenance activities were conducted throughout the industrial action period to enable a smooth start-up.