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GOLD FIELDS LIMITED - NUM gives strike notice at South Deep mine

Release Date: 01/11/2018 07:49
Code(s): GFI     PDF:  
 
Wrap Text
NUM gives strike notice at South Deep mine

Gold Fields Limited
Reg. No. 1968/004880/06)
Incorporated in the Republic of South Africa)
Share Code: GFI
ISIN Code: ZAE000018123
(“Gold Fields” or “the Company”)

MEDIA RELEASE


NUM gives strike notice at South Deep mine


Johannesburg, 1 November 2018: Gold Fields Limited (Gold Fields) (JSE,
NYSE: GFI) yesterday received a notice by the National Union of Mineworkers
(NUM) of its intention to embark on a protected strike at its South Deep
operation in South Africa to protest retrenchments at the mine. Under South
African labour law, the union is required to give 48 hours’ notice of its
intention to strike. The strike is set to commence tomorrow (2 November
2018) afternoon.

About 80% of the mine’s workforce are members of the union and, should the
strike proceed, it is expected to impact adversely on production during its
duration. Safety of employees is paramount and, if deemed necessary, South
Deep would also consider cessation of production for a limited period of
time.

As part of a wide-ranging restructuring announcement to stem South Deep’s
significant cash losses and consolidate current operations, Gold Fields
commenced a Section 189 process with the mine’s two registered trade unions,
the NUM and UASA, on 14 August 2018. Under the auspices of the Commission
for Conciliation, Mediation and Arbitration (CCMA), mine management has
engaged the branch leadership of the two unions since then about various
matters related to the section 189 process.

Consultations have been extensive with various options explored to improve
the sustainability of the mine and limit job losses. This included an offer
of voluntary severance packages, which was taken up by 177 employees.

Despite these efforts South Deep still has to reduce its workforce by
approximately 1,100 staff members and retrenchment letters were sent to
these employees on 31 October 2018. In addition, the mine will reduce the
number of contractors by approximately 420 people.

The selection criteria used to determine which employees would be affected
were part of the Section 189 consultations and included length of service,
performance and competency criteria and attendance records. Prior to the
commencement of the Section 189 process South Deep employed 3,614 full-time
employees and 2,214 contractors.

“We have reached a critical stage in the restructuring at South Deep, which
follows on previous unsuccessful initiatives to improve productivity,” said
Gold Fields CEO Nick Holland. “The restructuring will help to reduce the
risk of continuing operating losses and consolidates the current mining
operations as a first step to building a sustainable, long-term operation.
Unfortunately, the retrenchments and the reduction in contractor numbers
have become essential to ensure this and save the remaining 3,500 jobs.”

“South Deep has a substantial and well-understood ore body and we believe
that we can bring this into profitable production over the next few years
which will benefit all stakeholders, including the Westonaria communities
and the South African government,” Holland added.

The ‘no work, no pay’ principle will apply for the strike. “We respect the
laws that allow for a peaceful, legal strike, but we are very concerned
about the further impact that industrial action will have on the mine - and
on our employees, with potentially more job losses,” Holland said.

Gold Fields will announce South Deep’s latest production performance as part
of the Group’s Q3 2018 operational update to be released on 9 November 2018.


Enquiries

Investors

Avishkar Nagaser
Tel: +27 11 562-9775
Mobile: +27 82 312 8692
Email : Avishkar.Nagaser@goldfields.com

Thomas Mengel
Tel: +27 11 562 9849
Mobile: +27 72 493 5170
Email: Thomas.Mengel@goldfields.com

Media

Sven Lunsche
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
Email : Sven.Lunsche@goldfields.com



Notes to editors

About Gold Fields

Gold Fields Limited is a globally diversified gold producer with seven
operating mines in Australia, Ghana, Peru and South Africa, and a total
attributable annual gold-equivalent production of approximately 2.2 million
ounces. It has attributable gold Mineral Reserves of around 49 million
ounces and gold Mineral Resources of around 104 million ounces. Attributable
copper Mineral Reserves total 764 million pounds and Mineral Resources 4,881
million pounds. Gold Fields has a primary listing on the Johannesburg Stock
Exchange (JSE) Limited, with secondary listings on the New York Stock
Exchange (NYSE) and the Swiss Exchange (SIX).


Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd

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