M E D I A R E L E A S E
Gold Fields Limited
Reg. 1968/004880/06
24 St Andrews Road
Parktown, 2193
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 644-2400
Dir
+27 11 644-2460
Fax +27 11 484-0639
www.goldfields.co.za
Enquires
South Africa
Willie Jacobsz
Tel +27 11 644-2630
Fax +27 11 484-0639
Nerina Bodasing
Tel +27 11 644-2460
Fax +27 11 484-0639
North America
Cheryl A Martin
Tel +1 303 796-8683
Fax +1 303 796-8293
GOLD FIELDS WAGE STRIKE SETTLED
AT AN AVERAGE OF 6.5%
Johannesburg, 12 August 2005. Gold Fields Limited (GFI: JSE
and NYSE) is pleased to announce that it yesterday finalised a
two-year wage agreement with Unions and Associations,
effectively bringing to an end the strike that commenced with the
evening shift on Sunday, 7 August 2005. This settlement was
reached as part of the industry-wide negotiations coordinated by
the South African Chamber of Mines.
All employees are expected to return to work today, Friday, 12
August 2005.
While the settlement for different categories of employees range
between 6% and 7%, the weighted impact will be a 6.5%
increase in the salary bill of the Group’s South African
operations for F2006, and for F2007 CPIX plus 1%, or a
minimum of 6%, for the lowest paid employees and CPIX plus
1%, or a minimum of 5,5% for the rest.
Ian Cockerill, Chief Executive Officer of Gold Fields said:
“I am pleased that a mutually acceptable wage increase has
been agreed for Gold Fields. However, moving forward it will be
essential for all parties to recognise that we will have to think
creatively such that we can ameliorate the impact of these above
inflation increases and not jeopardise the long term sustainability
of our operations.”
Gold Fields has a range of cost savings and productivity
improvement initiatives in place across all of its operations,
through which to mitigate upward cost pressures. Because
labour costs account for approximately 50% of total costs on the
South African operations, the impact of this salary increase on
total production costs will be approximately 3%.
ends
Directors: C M T Thompson* (Chairman), A J Wright (Deputy Chairman), I D Cockerill
†
(Chief Executive Officer),K Ansah
#
, G J Gerwel, A
Grigorian°, N J Holland
†
(Chief Financial Officer), J M McMahon
†
, G R Parker
‡
, R L Pennant-Rea
†
, P J Ryan, S Stefanovich°,T M G
Sexwale, B R van Rooyen, C I von Christierson
‡
American,
†
British, *Canadian,
#
Ghanaian, °Russian
Corporate Secretary: C Farrel