Labour strike hits Harmony's Kusasalethu mine

Cape Town - Harmony Gold [JSE:HAR] announced on Thursday that employees of its Kusasalethu mine have embarked on an illegal strike, following the suspension of the branch leadership of the Association of Mineworkers and Construction Union (AMCU).

Harmony shares traded 1.47% lower at R30.15 by 09:45 on the JSE.

According to Harmony the suspensions came after AMCU encouraged workers to embark on a go slow at the mine.

"The AMCU branch leadership encouraged the illegal go slow at the mine, resulting in only 25% of the workforce reporting for work yesterday (Wednesday)," said Harmony. "The illegal go slow was called in response to the disciplinary procedures against 40 employees, following the illegal sit-in at Kusasalethu in January this year."

READ: Kusasalethu sit-in: Fears raised over safety of miners

Harmony said its management has sought an urgent meeting with AMCU to discuss the strike, which it said could lead to further disciplinary action. It expressed concern at reports of worker intimidation, and said that no employees have reported for the day shift on Thursday.

"We appeal to AMCU leadership to be responsible in its actions, to publicly condemn any form of intimidation and act against members engaging in intimidation, and to engage with management through the processes and procedures in place to deal with workplace disputes,” said Harmony CEO Peter Steenkamp.

Fin24 was still awaiting comment from AMCU at the time of writing.

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