SIM - Simmer And Jack Mines Limited - Update On St
SIM
SIIF
SIM - Simmer And Jack Mines Limited - Update On Strike Action At Buffelsfontein
SIMMER AND JACK MINES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1924/007778/06)
Share code: SIM
ISIN: ZAE000006722
("Simmers")
UPDATE ON STRIKE ACTION AT BUFFELSFONTEIN
Stilfontein - Following a statement issued by The National Union of Mineworkers
(NUM) referring to the strike at Simmer & Jack`s Buffelsfontein Gold Mine, the
company wishes to clarify what it views as a selective representation of the
offer made by the company to the NUM members.
According to chief operating officer, Deon van der Mescht, the agreement reached
by management and organised labour following the liquidation of Buffelsfontein
Gold Mine in March 2005, was based on an all inclusive wage offer (gate wage)
comprising a basic salary as well as a gross salary, that contributed towards an
employee`s total earnings. These gross earnings include a housing allowance,
medical aid, leave, a contribution to the company`s provident fund, an
underground allowance and a death benefit contribution. The average overall
increase of 10% proposed by the company applies to these benefits, as well as to
the basic salary.
NUM requested a minimum salary of R2 700 for level 5 employees. The current
basic salary for a level 5 employee is R2 010. The offer on the table currently
is to increase this basic salary from R2 010 to R2 450 over a 2 year period.
However, the net effect on a level 5 employee`s gross remuneration is an
increase from R3 710 to R4 520 as part of the 2 year deal, representing a 22 %
increase over two years.
The increase on gross remuneration varies from 22 % for level 5 to 12 % for
level 8 employees, for the two year period.
Additionally, in the course of the wage negotiations, the company has made
numerous other concessions that have not been calculated as part of the gross
package such as:
- increased sick leave
- additional days off for fulltime shaft stewards
- free transport for widows to provident offices in Johannesburg
As a result of the strike, underground production at Buffelsfontein has ceased,
barring essential services.
According to Van der Mescht, the impact of the strike would result in a loss of
revenue in excess of R1.8 million per day.
CONTACT PERSON: GAIL STRAUSS ON 084 777 4060
JOHANNESBURG
11 May 2007
Sponsor
Sasfin Capital
A Division of Sasfin Bank Limited
Date: 11/05/2007 08:36:01 Produced by the JSE SENS Department.
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