EXHIBIT 4.76
CCMA SETTLEMENT AGREEMENT
ENTERED INTO BETWEEN
BLYVOORUITZICHT GOLD MINING COMPANY LIMITED
(HEREINAFTER REFERRED TO AS "THE COMPANY")
AND
THE UNITED ASSOCIATION OF SOUTH AFRICA
SOUTH AFRICAN EQUITY WORKERS' ASSOCIATION
SOLIDARITY
THE NATIONAL UNION OF MINEWORKERS
(HEREINAFTER REFERRED TO AS "THE EMPLOYEE ORGANISATIONS")
1. PREAMBLE
As part of the Section 189 and Section 189A (of the Labour Relations Act)
processes that were initiated by the company on 28 June 2004, the Commission for
Conciliation, Mediation and Arbitration (CCMA) was approached to facilitate
meetings between the parties.
This agreement serves to conclude the CCMA's facilitation process and to record
the parties' agreement regarding the September 2004 rationalisation exercise at
the company. The parties note that this agreement is entered into in exchange
for the company's agreement on severance benefits which is contained in the
retrenchment agreement dated 2 September 2004 which has been concluded between
the parties.
2. RATIONALE FOR RETRENCHMENT
The parties agree that the retrenchment of the affected employees has become
unavoidable due to the underachievement of the company's financial and
production targets, which has resulted in the company experiencing significant
financial losses during the past 8 (eight) months. The parties acknowledge that
it is not economically sustainable for the company to continue making losses
into the future.
3. BUSINESS PLAN
The parties acknowledge that, as a closure avoidance measure, the company has
tabled a 6 (six) month business plan dated 1 September 2004.
Although this business plan involves the retrenchment of +/-2,000 (two thousand)
affected employees, it is designed to return the company initially to a
break-even point, then to work towards operating profitably over the next 6
(six) months.
The sustainability thresholds of the company's business plan are as follows:
- - 440 (four hundred and forty) kilograms of gold produced per month
- - at a maximum cost of R80,000 (eighty thousand rand) per kilogram
- - with revenue received of at least R82,000 (eighty two thousand) per
kilogram
- - Working costs in line with budget
The parties acknowledge that these thresholds will only be sustainable if the
company meets its monthly targets in terms of:
- - Recovered grade;
- - Square metres mined;
- - Development metres blasted;
- - Tonnes hoisted; and
- - Kilograms of gold produced.
The parties acknowledge that a consequence of the company's business plan will
be that certain working areas and infrastructure will be placed on "care and
maintenance" until such time as they can contribute profitably to the company's
performance.
4. ENABLING ENVIRONMENT
The parties acknowledge that it is critical to the successful implementation of
the business plan to create an operating environment that is conducive to
achieving and/or surpassing the business plan's sustainability thresholds.
In order to secure such an enabling environment, the parties commit themselves
in good faith to support the flawless implementation of the plan. To this
extent, the employee organisations undertake not to disrupt the normal
operations of the company in any way during the implementation of the business
plan.
5. PRESERVATION OF THE SECTION 189 (1) PROCESS
In support of clause 4 (above), the parties agree to preserve the current
Section 189 process for 6 (six) months, during the implementation of the
business plan.
However, in the event of the company being unable to achieve the sustainability
thresholds contained in the business plan during this period, the current
Section 189 process will continue under the auspices of the CCMA in order to
ensure the survival of the company.
Should the company contemplate the continuance of the Section 189 process, it
will request the CCMA to facilitate at least 2 (two) meetings within 2 (two)
weeks in order to consult with the employee organisations on the reasons for
such continuance. Thereafter, after the 2 (two) week period either party will be
able to exercise their rights in terms of S189A(7).
2
6. MONITORING COMMITTEE
The parties agree that the Blyvoor Forum will monitor the progress of the
implementation of the Business Plan on a weekly basis (after normal working
hours) for the first 2 (two) months (or until the parties agree otherwise) and
on a monthly basis thereafter.
THUS DONE AND SIGNED AT __________________________________________________
ON THE __________________ DAY OF _______________________________ 2004.
1. WITNESSES:
________________________________ ____________________________
For and On Behalf Of
BLYVOORUITZICHT GOLD MINING
COMPANY LIMITED
2. WITNESSES:
________________________________ ____________________________
For and On Behalf Of
THE UNITED ASSOCIATION
OF SOUTH AFRICA
3. WITNESSES:
________________________________ ____________________________
For and On Behalf Of
SOUTH AFRICAN EQUITY
WORKERS' ASSOCIATION
3
4. WITNESSES:
________________________________ ____________________________
For and On Behalf Of
SOLIDARITY
5. WITNESSES:
/s/ C. Goodwin
________________________________ ____________________________
For and On Behalf Of
BLYVOORUITZICHT GOLD MINING
COMPANY LIMITED
6. WITNESSES:
________________________________ ____________________________
For and On Behalf Of
THE NATIONAL UNION
OF MINEWORKERS
4