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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"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.
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
