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CEPPWAWU strikes at Afrox
African Oxygen Limited
(Incorporated in the Republic of South Africa)
(Registration number 1927/000089/06)
ISIN: ZAE000067120
JSE code: AFX
NSX code: AOX
("Afrox")
CEPPWAWU strikes at Afrox
Shareholders of Afrox are advised that talks were held in accordance with good corporate
governance and in line with all South African labour laws in October 2013 with the Chemical
Energy Paper Printing Wood and Allied Workers Union (“CEPPWAWU”) and the South
African Chemical Workers Union (“SACWU”).
As part of the negotiations, Afrox proposed to standardise grades and salaries upon union
agreement. After amicable talks, Afrox’s offer was accepted by SACWU and the agreement
was signed with this union in early March 2014.
CEPPWAWU did not agree and notified Afrox of intent to strike. The official notice from
CEPPWAWU indicates strike action will start on 19 March 2014. It will involve less than 10%
of the Afrox’s workforce. CEPPWAWU has informed Afrox its action will start with a go slow
and overtime ban. Full work stoppage by CEPPWAWU will start on Monday, 24 March 2014.
Afrox considers its proposed grading and salaries on offer to the union, and its existing policy
on long service and housing benefits, as market competitive. Afrox will continue to seek an
amicable agreement with CEPPWAWU. Afrox will follow its policy of ‘no work, no pay’ for the
duration of the strike.
The strike may impact Afrox’s ability to provide normal customer services and disruptions and
delays may occur. Afrox has plans in place and customers have been informed and will be
involved in the contingency planning.
Afrox has a zero tolerance towards acts of intimidation and/or violence and will hold unions
and their membership directly and legally accountable for any instances, and will institute
legal proceedings to protect its non-striking employees and assets.
Brett Kimber, Afrox Managing Director, confirmed that Afrox has an obligation to its customers
to maintain supplies and will take reasonable measures to fulfil this obligation.
Johannesburg
18 March 2014
Sponsor
One Capital
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