Agreement reached between NUM, Xstrata

Thursday, November 3, 2011

Pretoria - The National Union of Mineworkers (NUM) and Xstrata South Africa have reached an agreement regarding Xstrata's Employee Share Ownership Plan (ESOP).

NUM and Xstrata have been in discussions, facilitated by the Department of Mineral Resources, over the past seven days to resolve a dispute which saw NUM members downing tools over three weeks ago.

They were protesting against the proposal to award shares to workers according to which of three employment bands they are in. NUM is demanding the shares be allocated equally to all workers.

Xstrata has agreed to apply the principle of equality in its allocations in the ESOP, while NUM has agreed to call off the strike action with immediate effect.

The Department of Mineral Resources, meanwhile, will now recognise the Xstrata ESOP as compliant with the Mining Charter requirements, and give Xstrata South Africa the necessary credits to meet its 26% BEE ownership obligations across both its coal and alloys divisions.

Advocate Sandile Nogxina, Special Advisor to Minister Susan Shabangu and mediator in the dispute, said: "We applaud both NUM and Xstrata on the cooperative spirit that they demonstrated during these negotiations in the national interest."

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