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PRESS RELEASE: DATE: 23 January 2014

Equalisation Agreement

NUM and EXXARO will soon conclude and sign off Equalisation Agreement which destroy the policy of inequality at Exxaro Resources. The Agreement introduces fundamental changes in improving the working conditions of workers .This is a culmination of a tough engagement process that started in 2008. For example Exxaro Coal Business came into existence after the Kumba Iron Ore unbundled in 2006 to form Sishen Iron Ore Company (SIOC).

The coal producing component of Kumba was offloaded to merge with Eyesizwe Coal and form a BEE company the two of which became the Exxaro Coal Business Operations. The two companies were maintained as separate entities within the Exxaro Resources albeit with different conditions of employment. NUM was resolute in correcting this malady hence it Confronted the perpetual incremental levels of differentiation and inequality on conditions of employment of the employees. The process of equalisation would eliminate inequality at the workplaces within entities owned by Exxaro Resources guided by the philosophy of justice: same job - same skills - equal pay.

Process Agreement:

A process agreement between NUM and Exxaro was concluded in 2009. It laid the ground for the process to review and equalise conditions of employment.

Outstanding issues:

There are three issues outstanding for which NUM stands ready to successfully fight for their positive resolution within reasonable time and will not entertain any dilly dully from management. As the union consolidates its gains it is weary of dirty tricks tendencies intended to delay resolutions of problems between workers and management. For this reason "We will not allow the gains made by NUM in the past years to fade away due to this. We will continue to fight inequality, discrimination, and racism at all work places, within the mining, energy and construction sectors in South Africa. We relied on our matured engagement strategies and tactics to deliver these benefits to our members, for we knew it is only when these engagements fail that we would invoke relevant disputes resolution mechanisms including CCMA process and protected strikes" says Eddie Majadibodu NUM.

Chief Negotiator.

No Empty Promises:

The union engaged quietly on these fundamental issues without making empty promises to its members and avoided compromising the workers by calling for unprotected action to push for its demands. In this context NUM appreciate the progress made so far and calls upon the stakeholders to intensify efforts towards progressive resolution and conclusion of this process under the stewardship of the facilitator Tokiso Dispute Settlement. 

Progress made so far on issues below should galvanise our resolve towards finality on outstanding issues: 

  • The rates of pay based on grading will be equalised taking into account the highest denominator.
  • Medical Incapacity procedure and benefit
  • Service incremen
  • Medical Aid
  • Standby Allowance
  • Call-out Allowance
  • Overtime Rates (weekly, Sunday and holiday)

The above achievements mark a monumental score in improving the working conditions of all workers and ending undue differentials which simply divide the workforce and destroys their trust in unions. Parties are to meet during the first week of February 2014 in an attempt to finalise the remaining issues.

Livhuwani Mammburu: 083 809 3257
Eddie Majadibodu: 082 809 3227

National Union of Mineworkers
7 Rissik Street
Cnr Frederick
Tel: 011 377 2111

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