JOHANNESBURG, Aug. 2, 2012 /CNW/ - Gold Fields Limited (Gold Fields)
(JSE, NYSE, NASDAQ Dubai: GFI) announces that its South Deep Joint
Venture ("South Deep") 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 ("affected unaffiliated
employees") at South Deep via a Section 189 (3) notice.
South Deep management has been engaged in negotiations with trade unions
for several months to reach agreement on a proposed new operating
model, which, if implemented, would improve productivity and
performance at South Deep in line with international best practice to
the benefit of all stakeholders.
During these negotiations South Deep made several offers to the trade
unions which included attractive remuneration and benefit packages
linked to the adoption of the new operating model. The productivity
measures that South Deep is striving for will not only secure current
jobs but allow the mine to create an additional 400 full-time positions
at South Deep 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 which
benefit employees:
-
Changing the 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
-
Introducing a new Total Rewards System, which appropriately incentivises
employees who meet and exceed their targets safely
-
Adjusting the grading system to bring it into line with the rest of the
mining industry
-
Achieving greater mining flexibility through selective outsourcing
arrangements
-
Providing for improved maintenance through working arrangements with
Original Equipment Manufacturers (OEMs)
-
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 the 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 1500
jobs when the mine is in full production."
Agreement was reached with UASA, whose members will not be affected by
this process. About 330 employees have accepted the final offer by
South Deep and approximately 2,384 underground workers are 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 proposals not only create new jobs but secure
existing ones at South Deep. We have developed an operating model that
will be beneficial to the mine and we require employees to work within
this framework. 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."
Notes to editors
About Gold Fields
Gold Fields is one of the world's largest unhedged producers of gold
with attributable annualised production of 3.5 million gold equivalent
ounces from eight operating mines in Australia, Ghana, Peru and South
Africa. Gold Fields also has an extensive and diverse global growth
pipeline with four major projects in resource development and
feasibility, with construction decisions expected in the next 18 to 24
months. Gold Fields has total attributable gold equivalent Mineral
Reserves of 80.6 million ounces and Mineral Resources of 217 million
ounces. Gold Fields is listed on the JSE Limited (primary listing), the
New York Stock Exchange (NYSE), NASDAQ Dubai Limited, Euronext in
Brussels (NYX) and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities Limited
SOURCE: Gold Fields Limited