Gold One Says Workers’ Strike Contravenes Wage Agreement
Gold One International Ltd. (GDO) said work stopped at its Modder East unit in South Africa yesterday as most night-shift employees didn’t report for duty, while a group of day-shift workers started a planned strike today.
The strike at the operation, located 30 kilometers (19 miles) east of Johannesburg, is unprotected as it is against a three-year wage accord signed in April 2010, the Sydney-based company said in a statement. The gold producer will be implementing a no work, no pay policy, it said. Day-shift miners who are members of the Professional Transport Allied Workers Union submitted a strike notice on May 31.
PTAWU is not recognized by the company as it currently represents fewer than 30 percent of the employees at Modder East. The National Union of Mineworkers represents the majority of the 1,800 employees at the mine.
“We are currently in discussions with all parties and once the impact is understood, I will report further,” Grant Stuart, a company spokesman, said in an e-mailed response to questions, without saying how much production has been lost.
Gold One increased for a third day, rising 0.3 percent to 3.85 rand by the close in Johannesburg. The stock was unchanged at 43 Australian cents in Sydney.
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