/ 15 April 2005

Solidarity loses DRDGold court case

Trade union Solidarity’s urgent application to oppose the choice of liquidators of DRDGold’s operations in North West was dismissed in the Pretoria High Court on Friday.

Solidarity and the United Association of SA (Uasa), which represent about 660 of the mine’s 6 500 workers, asked the court to set aside the Master of the High Court’s decision not to appoint the liquidators of their choice, claiming their members could be severely prejudiced in the liquidation.

Solidarity expressed fears that preference would be given to large commercial creditors instead of workers.

Judge George Maluleke ruled that the two trade unions had not proved that their case was urgent as the liquidation process was lengthy and final liquidators had not yet been appointed.

A provisional liquidation order was granted in the Johannesburg High Court last month against Buffelsfontein Gold Mines (known as North West Operations).

This is the holding company of the Hartbeesfontein and Buffelsfontein Mines.

Maluleke also found that the trade unions had cited the wrong parties in their application, which was brought against the Master of the Pretoria High Court while the decision to appoint the provisional liquidators was made by the Master of the Johannesburg High Court.

The Pretoria master was not responsible for his Johannesburg counterpart’s decisions.

Maluleke said Solidarity and Uasa had also not proved that the master had not applied his mind when appointing the provisional liquidators or that the decision was arbitrary and unfair.

The decision was made after a high-level meeting attended by not only the master’s office, but also the minister of minerals and energy, the deputy justice minister and the National Union of Mineworkers (NUM), which represents the majority of the workers.

One of the liquidators, Barend Pietersen, was also appointed specifically to represent all of the workers, and the NUM supported his appointment.

Maluleke ordered Solidarity and Uasa to pay their own costs in the application, but ruled that the master’s costs would be part of the liquidation. – Sapa