Simmer & Jack Mines Ltd, the preferred bidder for DRDGold’s liquidated North West operations, has concluded an employment deal with the National Union of Mineworkers (NUM), the company said on Friday.
”In terms of the agreement, NUM’s members have accepted the new, restructured conditions of employment which Solidarity, the South African Equity Workers Association and the United Association of South Africa agreed to almost two weeks ago,” the company said.
The deal was signed late on Thursday following almost four weeks of negotiations.
”This is an important step for us,” said Simmers chairperson Roger Kebble.
”Without buy-in from organised labour, it would not have been possible to turn this marginal operation around. We were not prepared to continue with our bid without the full support of labour, so we are delighted that NUM now shares our vision for the North West operations.”
He said the deal laid the groundwork for the company to begin employing almost 3800 people under a new employment structure.
The next step would be to finalise an interim agreement with the liquidator as a precursor to the purchase agreement.
”We are confident that this will be concluded by early next week as it is in everyone’s best interests to resume operations,” Kebble said in a statement.
One of the conditions in Simmers’ bid for the operations, comprising Buffelsfontein and Hartebeesfontein mines, was an agreement with organised labour.
More than 6000 people have been in unemployment limbo since the operations went into liquidation in March.-Sapa