Embattled gold miner Gold One has suspended operations at its Modder East shaft in Springs, east of Johannesburg, after the Association of Mineworkers and Construction Union (Amcu) launched a fresh bid for recognition rights at the mine.
Gold One head of legal Ziyaad Hassam said Amcu is demanding to be afforded recognition status and organisational rights by the company, and that the closed shop agreement with rival union, the National Union of Mineworkers (NUM), be revoked. The agreement, which is recognised by the Labour Relations Act (LRA), means Gold One workers must be NUM members.
“Amcu has lodged an urgent application at the labour court, which will be heard next week Thursday, to compel NUM to hold a ballot to indicate what the numbers are in favour of keeping the closed shop agreement, and those wanting it dissolved,” said Hassam.
“The operations have been suspended until Monday at the earliest, the decision was taken on Thursday morning and is aimed at ensuring the safety of employees. We will re-evaluate on Monday. All employees were told to go home, further communication will be made when we intend to bring employees back to work.”
In October, Gold One was left counting the costs after 543 employees were trapped underground by their colleagues for three days — in what the police described as a hostage situation — in a dispute about union recognition.
The crisis cast a dim light on the troubled mining sector dogged by labour unrest, violence, illegal mining, and low productivity.
The drama was triggered after Gold One management apparently refused to recognise Amcu as a majority union at the mine. Amcu claims to represent almost all of the nearly 2,000 mineworkers at Gold One, which counts the China Development Fund as an investor.
After the ordeal ended, Gold One management promised to take action against those responsible for the hostage drama.
Amcu general secretary Jeff Mphahlele said they went to court to apply for nullification of the LRA clause giving life to the closed-shop agreement. He said the mine elected to suspend operations after community members marched to its office to register their grievances over the closed-shop agreement.
“The operation is closed because the company was threatened by the community, it has nothing to do with workers,” Mphahlele said.
Gold One is owned by the BCX Gold Investment Holdings consortium, which comprises Baiyin Non-Ferrous Group, the China-Africa Development Fund, and Long March Capital, according to its website.
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