Gold One International employees' strike enters fourth week

Gold One International (ASX, JSE: GDO) has advised that the industrial action which commenced on 23 March 2010 by employees in categories A and B (striking employees) has now entered its fourth week.

Gold One carefully considered the offer it tabled prior to the industrial action commencing and has consistently retained its position during the negotiations.

Management believes that the 3 year offer it has tabled is significant and is designed to ensure that all employees benefit from the expected profitability of the company as it improves in the coming years.

Production at Modder East has continued since the industrial action began on 23 March 2010, with the company treating to date a total of 7,967 tonnes of ore at an average head grade of 5.64g/t.

For the 15 working days during this period of industrial action, gold production has amounted to approximately 43 kilograms.

It is evident that the strike-action plan that has been implemented will allow the mine to operate indefinitely at these profitable production rates. The tonnes treated are a mixture of underground accumulations and fresh ore.

The fresh ore is mainly from on-reef development and is mined using mechanised mining methods.

Morale among the 200 employees who have reported to work during this industrial action is high and these employees, who do not form part of the National Union of Mine Workers (NUM) bargaining unit, remain committed to continuing at the aforementioned production rate.

While Gold One remains hopeful that the talks which resumed on 12 April will enable the parties to find ways to package the current wage offer in a way that is acceptable to NUM and its members, the company's management said that a resolution to the impasse may still take some time, but it is well positioned to deal with the situation.

Gold One said it continues to adopt a policy of ‘no work-no pay’.

http://www.proactiveinvestors.com.au/companies/news/6392/gold-one-international-employees-strike-enters-fourth-week-6392.html