DRDGOLD settles with UASA, NUM gives notice of labour action
14 September 2009
Johannesburg, South Africa, 14 September 2009. DRDGOLD Limited (JSE: DRD; NASDAQ: DROOY) announced today that its Blyvoor, ERPM and Crown operations have signed a two-year wage settlement with UASA.
In terms of the settlement, employees in the UASA recognition unit at Blyvoor will receive a 6.5% increase, at Crown a 6% increase and at ERPM a 4% increase. The Blyvoor increase is back dated to 1 July 2009. The Crown and ERPM increases are with effect from 1 October 2009.
In addition, employees in the UASA recognition unit are eligible for a gold price/profit linked incentive scheme, in terms of which their overall increases can rise to a total of 15%.
The National Union of Mineworkers (NUM) has been granted strike certificates in respect of the three operations and strike action is scheduled to begin at the start of the night shift tomorrow (Tuesday, 15 September 2009).
The NUM has rejected the companys offer of a 7% increase for lowest-category employees at Blyvoor and 6.5% for the balance, a 6.0% across-the-board increase at Crown and a 4% across-the-board increase at ERPM. The NUM has also rejected the gold price/profit linked incentive scheme.
South Africa & North America
James Duncan, Russell & Associates
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