S. AFRICA'S PLACER DOME, WESTERN AREAS TO FIRE 2.895 WORKERS
(The following is a reformatted version of a press release issued by PLACER DOME WESTERN AREAS JOINT VENTURE)
Johannesburg, Sept. 30 --- The Placer Dome Western Areas Joint Venture (JV) intends proceeding with its planned retrenchment of the balance of the 2 895 effected employees on Friday, October 1, 1999. The JV has already approved approximately 430 of the 722 applications for voluntary retrenchment/ early retirement and these employees are in the process of leaving the JV.
This decision follows a further period of consultation with the National Union of Mineworkers (NUM), as required under a court order issued by the Labor Court on September 21, 1999.
Despite every reasonable effort on the part of the JV over the past ten days go engage in consultations with the NUM, the two parties failed to reach consensus on avoidance measures.
Consequently, the JV is proceeding with the retrenchments in accordance with Section 189 of the Labor Relations Act, the Labor Court's final order and universally accepted industrial relations practices.
When, on August 6, 1999, the JV first announced it was considering retrenching these employees, it was stated that this action was designed to reduce the substantial losses suffered by JV during the June quarter. Factors contributing to the JV's poor performance included the loss of FULCO (full calendar operations), continued poor productivity performance and the sharp decline in the gold price. The subsequent rise in the gold price over the past few days, alone, is insufficient reason for the JV to reconsider these retrenchments. While the increase in the gold price is welcomed and certainly contributes to the job security of the remaining 5 000 employees, it has yet to prove to be sustainable. If this is or any other factor reveals that it can contribute to higher economic production at the JV, retrenched employees will be recalled in terms of the established recall provisions which exist.
The JV has put in place an innovative social plan which is designed to ameliorate the effects of these retrenchments. The goal of this project, which is being finance and managed by the JV, is to have at least 70 percent of the retrenched employees economically active within 24 months following their retrenchment. The JV hopes to work together with South African government, NGO's and their labor movement to guide the implementation of this plan. We are committed to ensuring the success of our current and past employees.
At the conclusion of this restructuring process that management of the JV is confidential of reaching its $200/ounce cash cost target by year-end without sacrificing production. This will ensure that adequate funding is available for the continued development of the massive South Deep gold mine.
For further information please contact: Patric Evans Mobile: +27 83 652 3646 -0- (CRL) Sep/30/1999 16:47
9/30/19
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