Please see following news release.
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| HILTON ATKINSON - Manager, External Stakeholder Relations, Corporate Affairs Tel + 27 12 307 4843 I Fax + 27 12 307 4760 I Mobile +27 83 609 1452 E-mail hilton..atkinson@exxaro.com I www.exxaro.com |
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NEWS RELEASE
19 March 2013
EXXARO STRIKE UPDATE
Diversified resources group Exxaro Resources Limited reports today that engagement with the National Union of Mineworkers (NUM) over the past week regarding proposals to find an end to the unprotected strike affecting the group?s operations has to date not been successful.
At a meeting last night between Exxaro management and the NUM leadership, an eight-point proposal put forward by Exxaro at the weekend was rejected.
Exxaro previously considered a list of concerns raised by employees and suggestions submitted by the NUM to resolve the strike at the Matla, Arnot, Grootegeluk, Leeuwpan, Inyanda and Reductants operations. A central issue is the non-payment of performance incentives which were not paid due to performance targets having not been met.
However, as the striking employees did not achieve performance targets which would have entitled them to an incentive payment, the group is not prepared to reward these employees with additional payments.
The NUM has confirmed that, although it was not the NUM who initiated the unprotected strikes, it was in fact their members who were out on strike.
The union?s suggestion to resolve the issue of the non-payment of performance incentives was for striking employees to receive an across-the-board once-off payment.
Instead Exxaro put forward a proposal which included the payment of the first quarter 2013 incentive of 2% of annual salary which would equate to a minimum of approximately R2 000 for all employees of Exxaro Coal, Exxaro Coal Mpumalanga and Exxaro Reductants. The proposal would have been subject to striking employees returning to their duties.
Although the proposal has been rejected, Exxaro is committed to continued engagement with its recognised trade unions in order to find a win-win solution. This will avert the possible negative effect that a prolonged strike could have on Eskom?s electricity generation and the country?s economy as a whole.
Exxaro reiterates the call for striking employees to return to work. The ?no-work-no-pay? principle applies and it is in the best interests of striking employees to resume their normal duties as soon as possible.
In yet a further attempt to avoid the possible dismissal of striking employees by issuing an ultimatum as it is entitled to do in law, Exxaro has approached the Labour Court to obtain an urgent interdict directing striking employees to immediately stop the strike and resume their normal duties. It will be heard in the Labour Court this afternoon and if granted, will be served on striking employees.
This follows instances of escalated violence and damage to property by striking employees at certain operations yesterday, which Exxaro views in a serious light.
Production at the affected operations has stopped. At this stage, mines supplying coal to Eskom power stations have contingency plans to maintain the functionality of their respective power stations. Exxaro continues to work closely with Eskom to ensure the availability of coal supply and currently there are adequate levels of supply available.
Ends
Editor?s note:
Exxaro is one of the largest South African-based diversified resources groups, with interests in the coal, mineral sands, ferrous and energy markets. www.exxaro.com
For enquiries:
Retha Piater
Executive Head: Human Resources
Tel: +27 12 307 4058
Mobile: +27 83 609 1106
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