NUM and Xstrata reach agreement

The National Union of Mineworkers (NUM) and Xstrata reached an agreement on Wednesday on the mining group’s employee share ownership plan (ESOP).

Xstrata agreed to allocate shares to employees equally and NUM undertook to call off a strike over the issue, said Sandile Nogxina, special adviser to Mineral Resources Minister Susan Shabangu.

“The department of mineral resources will recognise the Xstrata ESOP as compliant with the Mining Charter requirements.”

Nogxina said the department would give Xstrata the necessary credits to meet its 26% black economic empowerment ownership obligations across both its coal and alloys divisions.

Xstrata introduced the employee share ownership plan which offered workers shares equivalent to their working grade.

NUM rejected the offer and demanded that all members receive an equal number of shares regardless of their position in the company.

The talks were facilitated by the department.—Sapa