Anglogold Ashanti Limited - Anglogold Ashanti Welcomes End Of Strike
AngloGold Ashanti Limited
Incorporated in the Republic of South Africa
Registration Number: 1944/017354/06)
ISIN Number:ZAE000043485
JSE Share Code: ANG
(`AngloGold Ashanti/Company`)
ANGLOGOLD ASHANTI WELCOMES END OF STRIKE
AngloGold Ashanti welcomes the end of the gold mining industry`s wage dispute
and strike, achieved late today through agreement between the Chamber of Mines
and the National Union of Mineworkers and Solidarity.
Says CEO Bobby Godsell: `Strikes are by their nature unpleasant and costly.
However it is pleasing that the strike was resolved reasonably quickly and was
conducted in an orderly manner. It is an indication of how far we have come
since the last wage strike in 1987, which lasted for three weeks and involved
significant violence.
`The settlement, involving the lowest percentage increases ever, was also an
important step in establishing a norm of lower single digit increases in an
environment of low inflation,` he added.
Says AngloGold Ashanti South Africa region head Robbie Lazare: `With the
three lost production shifts and the start up to normalised production, we have
effectively lost just over a tonne of gold. Our focus now will be on improving
productivity initiatives so as to offset increased costs, and working with the
unions to recover some of the lost shifts.`
The two-year agreement, effective 1 July 2005, can be summarised as follows:
- Wage increases of between 6% and 7%, with the highest increase for the
lowest job category;
- A wage increase in the second year of CPIX plus 1%, subject to a guaranteed
increase of between 5,5% and 6%, again depending on the job category;
- Increased employer contributions to the risk benefit within the retirement
fund; and
- Improvements in accommodation subsidies.
ends
11 August 2005
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