Kumba Iron Ore(Kumba)announces with regret that talks with a group of illegal strikers occupying the Company's Sishen Mine,to get them to leave the mine,have not been successful.
As a result,they will now be notified to attend disciplinary hearings within 48 hours to show cause why they should not be dismissed and criminal charges will now be laid against them.A court order declaring the strike as unprotected and unlawful was served on the strikers last week.
In the early hours of Wednesday morning,3 October 2012,a group of approximately 300 employees on the night shift stopped working and seized the heavy mining equipment fleet that they were using.This includes 88 haul trucks and 13 pieces of secondary equipment(e.g.bulldozers),valued at about R3.3 billion.
The strikers are demanding a monthly salary increase of R15 000 for all Kumba employees(over and above what they are already earning)and have on several occasions threatened to destroy the equipment if their demands are not met.To date only limited damage had been caused.The group has taken up position on top of one of the mine dumps adjacent to Sesheng township in Kathu.
Norman Mbazima,Kumba's Chief Executive,said that every effort has been made over a period of ten days to get the strikers to leave the mine and the unsafe and unhygienic conditions that they are in.
"We have a two-year wage agreement in place that was concluded two months ago with the National Union of Mine Workers(NUM)and Solidarity and we see no reason for further negotiations on wages outside the collective bargaining structures."The agreement makes provision for a total-cost-to-company increase ranging between 9%and 12%,which is well above the rate of inflation.
About 95%of the illegal strikers are NUM members-but they stated that they were acting on their own and did not wish to be represented by their union.On Wednesday,10 October 2012,a week after the illegal industrial action commenced,the NUM asked to intervene in this matter."We welcome any attempt from their side to convince their members to leave the mine property,"said Mbazima.
It is estimated that of the original group,less than 120 strikers remain on the dump.This is mainly due to individual strikers abandoning the strike and slipping away into the surrounding community under cover of darkness.Some have also handed themselves over to the SAPS at the gate,while others have left for medical reasons(e.g.high blood pressure)and were admitted to hospital with the assistance of the Company.They have not rejoined the strike.
Mbazima thanked the vast majority of workers(the mine employs about 12 700 people)who are not supporting the illegal strike for their patience in spite of the impact of the strike on them and their families.
"Regrettably,this illegal action by a few is impacting all employees as their remuneration and benefits are linked to the Company's performance.Each passing day 120 000 tonnes in lost production is incurred,which will mean that permanent employees'Envision dividends next year and the next cash payout in 2016 may be significantly less."
[Kumba's permanent staff below management level benefit from Envision,an employee share scheme,that paid out R2.7 billion to 6 209 members at its first maturity date in December 2011.Each Envision scheme member who has been employed by the Company since its market listing in 2006 received a pre-tax cash payout of approximately R570 000 at the time.Envision scheme members also receive dividends twice a year which amounted to R33 675(pre-tax)per member in 2012.]
Kumba has kept local,provincial and national government abreast of developments since the start of the strike and is in constant contact with its recognised unions.
The Company will provide further updates as appropriate.
