/ 14 September 2009

DRDGOLD faces strike threat at three mines

DRDGOLD said on Monday it had reached a wage settlement with the United Association of South Africa (UASA) union, but may face a strike over pay by members of the National Union of Mineworkers (NUM).

The company said it had agreed with UASA for its members at its Blyvoor mine to receive a 6,5% wage hike, those at Crown a 6% increase and those at East Rand Proprietary Mines (ERPM) a 4% rise.

The wage deal at Blyvoor will be backdated to July 1, while those at the Crown and ERPM operations will take effect from October.

The company said it may face a strike by members of NUM, South Africa’s biggest union, as of Tuesday.

”[NUM] has been granted strike certificates in respect of the three operations and strike action is scheduled to begin at the start of the night shift tomorrow,” it said in a statement.

The union rejected the company’s offers of between 4% and 7% at the three operations. — Reuters