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Harmony Gold Breaches Agreement with NUM in South Africa

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13 July, 2005

The framework accord reached in May between South African affiliate NUM and Harmony Gold Mining Ltd. was broken last week when the firm refused to budge on its initial stand of sacking 5,000 workers at six mine shafts. “Clearly, Harmony is not interested in saving jobs but wishes to wait out the situation by mothballing shafts until the price of gold improves,” said NUM Gen. Sec. Gwede Mantashe. “Their emphasis is more on cost-cutting and efficiency improvement, going against the framework we developed on saving jobs.” The union has declared a dispute with Harmony through a formal letter to the company and the Commission for Conciliation, Mediation and Arbitration.