Mooiplaats strikers accept Coal of Africa's improved offer

Miner Coal of Africa said that the National Union of Mineworkers in South Africa has called off the strike at the firm's Mooiplaats colliery after agreeing to an improved pay offer.

Workers at the mine went on strike on Tuesday after the union rejected the company's offer of a 22% pay rise. They returned to work the following day after accepting an improved offer of a 26% pay rise, which will include medical aid assistance, housing allowance as well as shift and underground allowances. The new deal has been back-dated to July 1st.

The settlement translates to an increase of about 1% on Mooiplaats' total cost per saleable tonne, Coal of Africa revealed.

Start your trial of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

"As Mooiplaats colliery staff return to work, we have initiated management actions that will reduce operational costs and improve efficiencies at the operation," disclosed John Wallington, Chief Executive Officer of Coal of Africa.

"Management is fully aware of the impact the strike has had on the profitability of the mine and is implementing various initiatives to address the long term viability of the operation. We will complete the full review and restructuring of the colliery that commenced prior to the strike action." Wallington concluded.