Gold One Modder East Grapples with Costs from Two Hostage Situations

Gold One’s Modder East operation is still assessing the cost of 2 hostage situations as the mine takes action against numerous workers involved in the incidents. Following events at an underground shaft last year, where workers were held against their will, the mine has terminated the employment of 400 workers. EWN reports that the initial labour dispute stemmed from demands to grant organising rights to the Association of Mineworkers and Construction Union (AMCU), challenging the current status held by the National Union of Mineworkers (NUM). The hostage situations led to production halts multiple times between October and December.

Also read: Gold One Mine Hostage Drama: Workers Beginning to Resurface After Four-Day Ordeal

Despite some workers expressing uncertainty about the dismissals, Ziyaad Hassam, Gold One’s head of legal, outlined the charges faced by the affected individuals. “They warranted criminal charges, they were also in contravention of the company’s disciplinary code, as well as being in contravention of two interdicts from the labour court preventing any illegal action, and they also placed the company under serious financial strain.”

Hassam highlighted the company’s ongoing struggle to recover from the industrial action, revealing that the mine experienced a daily production loss of over R12 million during the strike. The impact on production has been severe, prompting the need to revise the short-term production budget until the operation can return to full capacity. Gold One Modder East faces significant operational challenges as it navigates the aftermath of the hostage situation regarding workforce management and financial recovery.

Also read:

Gold One Dismisses Over 400 Mine Workers Following Illegal Strike

Picture: X / tndaba

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