Gold Fields Limited - Gold Fields Wage Strike Settled At An Average Of 6.5%
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
Share Code: GFI
ISIN Code: ZAE000018123
MEDIA RELEASE
GOLD FIELDS WAGE STRIKE SETTLED AT AN AVERAGE OF 6.5%
Johannesburg, 12 August 2005. Gold Fields Limited (GFI: JSE and NYSE) is
pleased to announce that it yesterday finalised a two-year wage agreement with
Unions and Associations, effectively bringing to an end the strike that
commenced with the evening shift on Sunday, 7 August 2005. This settlement was
reached as part of the industry-wide negotiations coordinated by the South
African Chamber of Mines.
All employees are expected to return to work today, Friday, 12 August 2005.
While the settlement for different categories of employees range between 6% and
7%, the weighted impact will be a 6.5% increase in the salary bill of the
Group`s South African operations for F2006, and for F2007 CPIX plus 1%, or a
minimum of 6%, for the lowest paid employees and CPIX plus 1%, or a minimum of
5,5% for the rest.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
`I am pleased that a mutually acceptable wage increase has been agreed for Gold
Fields. However, moving forward it will be essential for all parties to
recognise that we will have to think creatively such that we can ameliorate the
impact of these above inflation increases and not jeopardise the long term
sustainability of our operations.`
Gold Fields has a range of cost savings and productivity improvement initiatives
in place across all of its operations, through which to mitigate upward cost
pressures. Because labour costs account for approximately 50% of total costs on
the South African operations, the impact of this salary increase on total
production costs will be approximately 3%.
Ends
12 August 2005
Date: 12/08/2005 04:24:03 PM
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