Gold One International employees' industrial action continues

Gold One International (ASX, JSE: GDO) has advised that company employees in categories A and B are continuing with industrial action which commenced on 23 March 2010.

The majority of the striking employees are semi-skilled employees represented by the National Union of Mineworkers (NUM) and comprise approximately 80% of the company’s 1000 employees.

As previously announced, an impasse between the company and the NUM on reaching agreement on
wages for the company’s unionised workforce has led to the protected strike. A policy of “no work-no pay” will continue to apply for the duration of the industrial action.

Wage increases for employees outside of the NUM bargaining unit have in the interim been implemented.

Production at the company’s Modder East mine continues at approximately 500 tons of ore per day – amounting to around 50% of normal daily volume - primarily from on reef development.

The company said morale on site remains high. The majority of Gold One’s employees at Modder East have been recruited from the local East Rand communities and are not migrant workers as alleged by the NUM.

In addition there are no dwellings on or in the immediate vicinity of Modder East other than in existing settlements which existed prior to the establishment of Modder East.

Shareholders have been advised that the impasse may continue for some time as the difference between the wage increase offer tabled by the company and the demands of the employees are still significant.

http://www.proactiveinvestors.com.au/companies/news/6202/gold-one-international-employees-industrial-action-continues-6202.html