Gold One International Ltd. has signed a two year wage deal with miners at its Modder East operations, the company announces, in a step that promises to stabilise production.

The National Union of Mineworkers accepted the wage agreement on behalf of the workforce, which was dismissed earlier this year following extensive illegal strikes halted production at the Modder East mine.

The agreement sees workers’ wages increased by 8 percent for Category B Upper employees and by 10 per cent for A and B Lower employees in 2013 and 2014; with the agreement effective from January 1st 2013, until December 31st 2014.

New terms have also been implemented in the agreement, including a maternity leave provision, medical insurance, and company provided transportation.

Gold One President and CEO Neal Froneman expressed his satisfaction with the new agreement, which puts an end to a period of labour unrest at the company which started in June of this year.

He said: “…I am extremely pleased that we have been able to use this current disruptive period to successfully renegotiate a new two year wage agreement. This is a milestone achievement and all parties should be commended on concluding the wage deal and demonstrating our joint ability to align on goals of mutual interest. This outcome will see normality and long term stability return to the Modder East Operation as it ramps up to pre-strike production levels during the December 2012 quarter.”

With illegal strikes stopping production at the developing plant earlier this year, the company took the brave step of firing 1,044 workers on June 11th.  In order to continue production, the mining outfit hired contract miners from Jongingozi Outsourcing, who have been manning the operations at Modder East since the mass termination.

The new wage agreement sees the company sign on all contracted labour, in what it envisages will be a “period of stability for the mine”.


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