Gold One Fires 1,035 Workers After South Africa Strike
Stock Chart for Gold One International Ltd (GDO)
Gold One International Ltd. (GDO) fired more than half its employees at its main Modder East unit in South Africa for taking part in what the Australian-based mining company called an illegal strike action last week.
As many as 1,035 workers have been dismissed out of a typical workforce of about 1,800 people at the mine, located 30 kilometers (19 miles) east of Johannesburg, Sydney-based Gold One said today in a statement.
Limited mining and milling operations are continuing, surface stockpile sources are being processed and contingencies are in place to ensure that the mine, which produced 123,179 ounces of gold in 2011, remains profitable, the company said.
The company said June 4 the work stoppage by day-shift miners who are members of the Professional Transport Allied Workers Union was unprotected as it breached a three-year wage accord signed in April 2010. The union isn’t recognized by the company.
Gold One fell 3.9 percent to 3.70 rand in Johannesburg trading yesterday, while its Sydney shares last traded on June 7, down 1.2 percent at 41.5 Australian cents.
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