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'Creative' deal saves 500 jobs

13 February 2009

For companies adapting to survive the global economic crisis, retrenchments were not the only option, South Africa's Commission for Conciliation, Mediation and Arbitration (CCMA) said on Thursday after negotiating a creative deal that saved almost 500 jobs at Buffelsfontein Gold Mine in North West province.

A facilitation process with the employer and four trade unions - the National Union of Mineworkers, the United Association of Southern Africa, Southern African Equity Workers Association and Solidarity - resulted in a deal being struck on Wednesday.

"Parties signed an agreement that resulted in 495 jobs being saved," CCMA director Nerine Kahn said in a statement on Thursday.

"This process bears testimony that restructuring in these times need not lead to large-scale job losses; and that collaboration between the parties can result in creative solutions."

To achieve this, Kahn said, business and labour needed to be committed to working together and coming up with workable plans to avoid retrenchments.

Buffelsfontein Gold Mine announced in December that due to an "inability to achieve its targets due to the increase in the costs of materials required for mining and milling", it needed to shed 500 jobs.

In terms of the agreement facilitated by the CCMA, the trade unions will to work an additional shift every month until 19 December 2009.

For its part, the mine agreed to reduce contract labour and to replace it with permanent employees.

"The parties further agreed to negotiate a revised production calendar for 2010 and to establish a task team comprising representatives of trade unions and management to identify blockages in the production process in the mine," the CCMA said.

"The net effect of the agreement was that only five employees were affected by retrenchment."

Sapa