'industrial action'
WTF else can happen with this company?
Eastern Platinum Limited: Update on the Reported Industrial Action at Crocodile River Mine Operations (ccnm)
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2011) -Mr. Ian Rozier, President and CEO of Eastern Platinum Limited("Eastplats" or the "Company") (TSX:ELR)(AIM:ELR)(JSE:EPS) wishes toclarify various reports with respect to recent events at the CrocodileRiver Mine ("CRM") during the period of wage negotiations that coincidewith national elections.
Further to ongoing wage negotiations at CRM, a meeting was held on Thursday 5thMay at CRM by the members of the National Union of Mineworkers ("NUM")during which the Company's most recent revised wage offer wascommunicated to its members. This revised offer was rejected by NUMmembers.
On Friday 6th May, mine vehicles weredriven by employees through the security gate to the Zandfontein Minecausing damage to mine property. Employees then embarked on unprotectedindustrial action. Mine services at both Zandfontein and Maroelabultunderground mines were also damaged, and for safety reasons, themanagement at CRM instructed the mines to be vacated. Approximately 180workers then proceeded to unlawfully occupy the mines. Mine managementadvised employees to cease this illegal action, and simultaneously, acourt interdict against NUM and its members was granted that instructedNUM and the employees involved to cease the action and vacate the mine.The workers involved made several demands to management, as well asthreats of damage to mine property and underground infrastructure ifmanagement did not comply with these demands. To safely resolve thissituation, to prevent it from escalating, and to safeguard the overallintegrity of mine installations, management had numerous meetings withNUM and instructed them to ensure that their members vacated the mineand ceased their unprotected strike action. An offer was made by minemanagement to resolve the situation but this was rejected by NUM and/orthe employees involved who refused to vacate the mine and made yetfurther demands of management that were rejected. As these workersrefused to vacate the mine, the offer made by management was thenwithdrawn.
Following the failure to resolve this illegal actionby some of their members, NUM invited the Congress of South AfricanTrade Union ("Cosatu") to assist in negotiations with the instigators ofthe illegal industrial action. Certain statements were made by theCosatu and NUM representatives to their members in order to encouragethem to vacate the mine. There was no agreement in place between CRM andNUM/Cosatu at this time. The workers involved in the illegal actionsubsequently vacated the mine.
On Saturday 7th May, after the mine hadbeen vacated, management temporarily suspended operations at CRM pendingthe results of a safety inspection of the shafts to inspect damage tomine infrastructure. The full extent of this damage was subsequentlyfound to have involved the sabotage of underground electrical andpumping equipment that resulted in flooding, as well as damage to theventilation system. This was regarded as a serious threat to minesafety, and in line with protocols as set out internally and by theDepartment of Mineral Resources ("DMR"), further safety audits were madeto assess damage and to begin conducting repairs to ensure the safetystandards continue to be met. Employees were informed through theirunions that CRM intended to suspend mining operations in order to makethe mine safe for employees. NUM was informed that all employeesinvolved in the illegal occupation and other unlawful acts weresuspended pending a full investigation.
To clarify certain allegations made by Cosatu, noneof the NUM members involved in the illegal action have been dismissed atthis time and the Company is conducting a full investigation of events,including statements made by some workers that were forcibly preventedfrom vacating the mine. Furthermore, no workers have been "locked out"as stated by Cosatu. The mine progressively resumed operations oncesafety concerns had been addressed and the mine concentrator continuesto operate. However, there has been further unprotected industrialaction, including an unlawful blockade at the mine entrance tointimidate and prevent non-striking employees from going to work. Ifthis situation continues, then the Company intends to deal with allworkers who do not report for work from the commencement of the morningshift on Thursday 12th May 2011 in accordance with the legal procedure available to CRM.
The Company wishes to state categorically that it hasat all times acted in good faith and within the protocols as set out inthe application for safety protocols and labour relations legislation,and conducts all its actions in accordance within the legal frameworkgoverning such actions.
Eastplats and the management at CRM are deeplyoffended by the accusations made by Cosatu that CRM exploits itsworkers, has a racist attitude towards its workers, participates in"modern day slavery and human trafficking", and discriminates againstfemales with respect to maternity leave, or at all. Eastplats is proudof its safety record at the mine (currently standing at over 3 millionfatality free shifts), the working conditions at CRM, the conditions ofemployment for all its employees, including training programs, housingarrangements and benefits, and its proactive social and labour plan. Atall times, the Company has acted in the best interests of safety and isconfident that it has the support of the DMR for its actions undertakento ensure a safe working environment for all employees at the mine.
"We regret these illegal actions by a very smallminority of our employees at CRM and hope for a speedy resolution tothis issue," stated Ian Rozier.
Total shares issued and outstanding – 908,187,807