21st Sep 2018 17:33
LONDON (Alliance News) - Bushveld Minerals Ltd said Friday it has struck an agreement with a trade union, resulting in the calling off of a strike at its Vametco vanadium mine in South Africa.
Bushveld has agreed with the Association of Mineworkers & Construction Union to pay employees an amount in lieu of an employee share options scheme. The union had called the unprotected strike after a dispute related to the scheme payments between 2013 and 2017 was called.
Each employee will receive ZAR15,000 after tax for the period covering the first six months of the year. A second payment will be made for the second half of 2018 after the release of its annual results.
As a result of the agreed payments, the strike was called off and workers have started returning to work.
"We are delighted that we have been able to reach an agreement that results in the mining operations resuming", Bushveld Chief Executive Officer Fortune Mojapelo said. "This is a positive outcome for all parties, ensuring that the resource continues to bear fruit while the company strives towards building a sound partnership with all employees."
"We are particularly pleased that the agreement upholds all previous engagements and agreements entered into by the company and workers including the May 2018 settlement agreement," Mojapelo added. "In addition, the agreement affirms the important role of the workers as key stakeholders for the company, and we are pleased they will share in the success of Bushveld Minerals."
"Finally, the settlement agreement includes provisions designed to discourage any future participation in unprotected industrial actions by the workers at the risk of losing the participation of any ESOP payments," Mojapelo said. "We are glad that all parties have reached a mutual beneficial agreement and we can now look forward to ending the year with a solid performance."
Shares in Bushveld closed 1.0% higher at 26.50 pence on Friday.
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