GoldFields and NUM fail to reach deal on South Deep

Gold Fields has today announced that its South Deep joint venture has entered a formal consultation process with the National Union of Mineworkers (NUM) and other affected employees who are not members of a recognised trade union through a Section 189 notice.

Management of the South Deethe procedure to start the robo sand plantp venture has been engaged in negotiations with trade unions for several months to reach an agreement on a proposed new operating model that would improve productivity and performance at the gold mine, in line with international best practice, if implemented, to the benefit of all stakeholders.

During these negotiations South Deep management made several offers to the trade unions, which included remuneration and benefit packages linked to the adoption of the new operating model.

The productivity measures that the mine is striving for will not only secure current jobs but allow the creation of an additional 400 full-time positions in the immediate short term.

This proposed new operating model defines strategic choices on labour productivity, equipment and maintenance, mine design and infrastructure.

To implement this model, there are six changes that will benefit employees, which include the following:
• Changing of shift arrangements to allow for 3.5 hours more face time a day to achieve improved production results and provide employees with 43 more days off per year.
• The introduction of a new total rewards system, which appropriately incentivises employees who meet and exceed their targets safely and adjust the grading system to bring it into line with the rest of the mining industry.
• Greater mining flexibility achieved through selective outsourcing arrangements.
• Provision of improved maintenance through working arrangements with Original Equipment Manufacturers (OEMs) and aligning policies and procedures to Gold Fields and industry best practice.

Peter Turner, executive VP for the Gold Fields South African region, said: “Unfortunately, no agreement could be reached with NUM on the implementation of these changes. We believe this operating model is in the best interests of the vast majority of employees. South Deep is in a growth phase and with these changes we can create an additional 1 500 jobs when the mine is in full production.”

However, an agreement was reached with UASA, whose members will not be affected by this process, with about 330 employees accepting the final offer by South Deep, while approximately 2 384 underground workers remain affected by the Section 189 notice.

South Deep is an important and strategic growth asset for Gold Fields and the South African mining industry, with gold reserves to run beyond 2070. Gold Fields is committed to a process that ensures that South Deep is managed optimally and adheres to the principles of good governance and sound labour practice to create best-in-class operating conditions.

Turner concluded: “Our proposal not only create new jobs but secure existing ones. We remain hopeful that during the 60-day consultation process we will be able to agree on a way forward that will be in the best interests of all stakeholders.”