Bloomberg News

Gold One Says Court Rules Modder East Strike Unprotected

June 05, 2012

Gold One International Ltd. (GDO) obtained an interim interdict from South Africa’s labor court ruling that the strike action at its Modder East unit, which halted operations yesterday, is unprotected.

Work stopped on June 3 when most night-shift employees didn’t report for duty, while a group of day-shift workers started a planned strike yesterday. The court interdicted the Professional Transport Allied Workers Union from encouraging or inciting any employees to participate in the unprotected strike at the operation, located 30 kilometers (19 miles) east of Johannesburg, Sydney-based Gold One said in a statement today.

“This continued unprotected strike action will result in disciplinary action, which may include dismissal,” it said.

The union, which represents fewer than 30 percent of the employees at Modder East, isn’t recognized by the company. The National Union of Mineworkers represents the majority of the 1,800 employees at the mine.

Modder East management is communicating the details of the interdict to employees and has instructed that they report for duty, it said. Most workers for both yesterday’s night shift and today’s morning session failed to report for duty, the company said.

Gold One closed unchanged at 3.85 rand in Johannesburg. The stock was also unchanged at 43 Australian cents in Sydney.

To contact the reporter on this story: Tshepiso Mokhema in Johannesburg at tmokhema@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net


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