Kusasalethu strike comes to an end

JOHANNESBURG (miningweekly.com) – After six days of ongoing industrial action at the Kusasalethu mine, near Carletonville, the striking workers have returned to work, Harmony Gold said on Thursday.

Workers once again downed tools last week, prompting Harmony on Friday to seek an interdict from the Labour Court of South Africa to declare the industrial action unprotected and ordering employees to return to work.

Despite the court interdict and the subsequent ultimatum from Harmony for workers to return to work by Tuesday night or face disciplinary action, no employees had reported for work over the weekend or Monday and very few had returned on Tuesday.

However, Harmony management and Association of Mineworkers and Construction Union (AMCU) leadership subsequently reached an agreement, and all employees reported to work on Thursday morning.

“We are relieved that Kusasalethu is back to normal. Unprotected industrial action affects the mine’s viability, its employees and their families. It is prudent that the Kusasalethu team now continues to produce safe, profitable ounces in line with its plan,” said CEO Peter Steenkamp in an update to shareholders.

The current situation followed a spat of unprotected strikes at the operation in recent months, despite Harmony and recognised unions – including AMCU – having entered into various labour agreements since 2013.

"Despite reaching these agreements, AMCU and its members have, since the start of 2017, continued to disrupt operations, threatening the safety of Harmony's employees and impacting negatively on production,” Steenkamp said.

Late in March, workers embarked on a two-day unprotected strike, with Harmony saying this was in retaliation for its suspension of AMCU branch leadership that had encouraged an earlier go-slow at the mine.

The go-slow was in response to disciplinary procedures against 40 employees, following an illegal sit-in at Kusasalethu in January, when around 1 700 employees staged a 48-hour wildcat underground sit-in.

Harmony earlier this week said it had lost some seven to ten days' of production at Kusasalethu since March 21, at a rate of 15 kg of gold production a day.

Harmony’s share price on the JSE rose by 4% early on Thursday.