DRDGOLD Limited has announced that some 600 employees at its Ergo operation downed tools at the start of the day shift today.
Johannesburg, South Africa. 8 October 2012. DRDGOLD Limited (DRDGOLD; JSE, NYSE: DRD) has announced that some 600 employees at its Ergo operation downed tools at the start of the day shift today.
This follows DRDGOLD management’s refusal to accede to eleventh-hour demands by the union in wage negotiations that all entry-level employees be “rolled up” from job category 4 to job category 6, and that a skills retention increase for engineering foremen be extended to all foremen.
The company’s offer, for the two-year period, is a basic wage increase of 8% for employees in job categories 4 and 5 and of 7.5% for employees in Categories 6 to 15, together with 10% increases in the living out allowances for 2013 and 2014.
The effect of the implementation of the company’s offer would be an 8.1% increase in the company’s annual wage bill, amounting to approximately R19 million per annum.
Implementation of the union’s eleventh-hour demands would increase this by a further 18.2% or R43 million per annum.
At present, DRDGOLD’s Ergo operations are not affected by the industrial action. The industrial action is protected, as the union was granted a strike certificate of non-resolution of dispute by the CCMA.
James Duncan, Russell and Associates
+27 11 880 3924 (office)
+27 (0) 79 336 4010 (mobile)
Investor and Media Relations
Phil Dexter, St James’s Corporate Services
+44 (0) 20 7796 8644 (office)
+44 (0) 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a sustained strengthening of the Rand against the Dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licenses or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors. These risks include, without limitation, those described in the section entitled “Risk Factors” included in our annual report for the fiscal year ended 30 June 2012, which we filed with the United States Securities and Exchange Commission on 26 October 2012 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to the occurrence of unanticipated events. Any forward-looking statement included in this report have not been reviewed and reported on by DRDGOLD’s auditors.