To view the PDF file, sign up for a MySharenet subscription.

ROYAL BAFOKENG PLATINUM LIMITED - RBPlat concludes wage agreement with the NUM

Release Date: 17/07/2014 09:45
Code(s): RBP     PDF:  
Wrap Text
RBPlat concludes wage agreement with the NUM

ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP ISIN: ZAE000149936
(“RBPlat” or the “Company”)


RBPLAT CONCLUDES WAGE AGREEMENT WITH THE NUM

RBPlat is pleased to announce that the Company has successfully concluded a wage
agreement with its permanent employees, represented by the National Union of
Mineworkers (NUM). The current three-year wage agreement expired on 30 June 2014.

The new wage agreement will be implemented in two phases. The first phase will be
effective from 1 July 2014 to 30 June 2017, while the second phase, the terms of which
have already been agreed to (as disclosed below), will be effective from 1 July 2017 to 30
June 2019.

Given the duration of the new wage agreement, the parties have agreed that a wage
review will be undertaken in May 2017. The purpose of this review will be to ensure that
the agreed increases are in line with the Consumer Price Index prevailing at that time, and
that RBPlat’s minimum wage remains in line with that of the platinum industry.

The new wage agreement applies to all RBPlat employees within the A to D1 categories
which constitute 89% of the Company’s workforce.

RBPlat management believes that the new wage agreement is unique in that it presents a
total value proposition for all Company stakeholders. It incorporates an Efficiency
Improvement Model (the “Model”) designed to assist RBPlat to achieve its long-term
business objectives while ensuring that employees meet their performance targets. A
committee comprising management and recognised trade union representatives will
oversee the implementation of the Model.

The value proposition includes a housing component that forms part of the housing
scheme the Company announced on 2 June 2014. The housing scheme enhances the
ability of employees to create sustainable personal wealth through ownership of an asset
that will appreciate over time. The safe and secure environment offered by the housing
scheme is expected to support a family orientated lifestyle. It is also envisaged that decent
living conditions for employees will contribute positively towards improved performance
and the prevailing safety culture. The present Living Out Allowance (“LOA”) and Home
Owners Allowance (“HOA”) will be gradually phased out as employees are allocated
homes and applied instead as Housing Fund Contributions.

The LOAs and HOAs that remain in place will be increased by approximately 7% per
annum for the first two years of the new wage agreement and thereafter remain the same
for the remaining three years. The new agreement is expected to increase the total labour
cost-to-company for RBPlat’s A to D1 category employees by an average of 9.6% per
annum over the five-year period of the agreement.
All Company employees within the A to D1 categories will receive increases on basic pay
on a sliding scale as follows:

    -     Employees employed and utilised as Development or Stoping Machine
          Operators (Rock Drill Operators) will receive annual increases of 10.5%, 10.5%,
          9.5%, 10.5% and 9.5% on 1 July of every year from 2014 to 2018 respectively;
    -     A1 to B7 Band employees (excluding Rock Drill Operators) will receive annual
          increases of 10%, 10%, 9%, 10%, and 9% on 1 July of every year from 2014 to
          2018 respectively; and
    -     Employees in the Supervisory Bargaining Unit will receive annual increases of
          8%, 8%, 7%, 8% and 7% on 1 July of every year from 2014 to 2018
          respectively.


RBPlat believes that the new agreement will provide the Company and all its business
partners with a critical measure of stability as they continue to focus on growing the
business for all stakeholders.

The Company acknowledges with appreciation the commitment and dedication of its
workforce which has enabled it to continue with stable operations. The Company also
acknowledges the constructive and mature manner in which the wage negotiations
process was conducted by the union (NUM).


Johannesburg
17 July 2014


JSE Sponsor
Macquarie First South Capital (Pty) Limited

For further enquiries, please contact:

Investor Relations
Lindiwe Montshiwagae
Investor Relations Manager
Tel: +27 (0)10 590 4510
Email: lindiwe@bafokengplatinum.co.za

Media
Mpueleng Pooe
Executive: Corporate Affairs
Tel: +27 (0)10 590 4515
Email: Mpueleng@bafokengplatinum.co.za

Date: 17/07/2014 09:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story