End of strike at Northam’s Zondereinde Mine
- 18 Oct 2010
Johannesburg, Monday 18 October 2010. The management of Northam Platinum Limited (Northam) advises that agreement has been reached with the National Union of Mineworkers (NUM) following strike action at the company’s Zondereinde mine in Limpopo province.
The salient features of the agreement are as follows:
- general increases ranging between 10% and 11% in wages, comprising a basic increase and a 0.5% service increment;
- an increase of 13% (including a 0.5% service increment) in the basic minimum wage of underground operators – eg winch drivers, aquajet operators, loco and loader drivers. This group numbers 1 564 employees (22.7% of the workforce);
- an increase of 12.5% in the living out allowance, from R1 600 to R1 800 per month.
Operations are expected to resume on Tuesday 19 October 2010, initially focussing on re-establishing safe underground working areas which may have deteriorated during the stoppage. This, along with other operational requirements, is likely to have an adverse effect on the return to normalised production levels.
The six-week strike has resulted in revenue losses of approximately R380 million.