(Bloomberg) -- Gold Fields Ltd. signed an agreement with the National Union of Mineworkers to end a 45-day strike at the South Deep mine in South Africa.
- While employees have been returning to work since the union called off the strike on Dec. 13, the deal was formalized after it held a meeting of its members.
Key Insights
- The two sides agreed that Gold Fields will cut 1,082 jobs at South Deep, most of which have already been processed. The company originally announced a plan for more than 1,500 cuts, as part of a restructuring aimed at turning around the unprofitable mine, which has long been a drag on its performance.
- Gold Fields has already reduced its 2018 output forecast to take the strike into account. The company last week estimated lost revenue at 366 million rand ($25.6 million). The company reached agreements with the union on lost revenue and production targets, with output expected to ramp up gradually and operations to continue during the Christmas and New Year period.
- The South Deep strike also exposed divisions in the NUM, after the regional office instructed the local branch to end the protest, which it called “counterproductive.”
Read More:
- Gold Fields statement on the agreement with NUM here
To contact the reporter on this story: Liezel Hill in Johannesburg at lhill30@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Paul Richardson
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