Diversified miner Xstrata has reached an agreement with the National Union of Mineworkers (NUM)over an Employee Share Ownership Programme (Esop).
Xstrata has agreed to apply the principle of equality in its allocations in the Esop, after it initially wanted to allocate dividends proportionally to workers in the Patterson grades A to C, while grades D to F, which comprise management, were expressly excluded from the scheme.
The parties also agreed that the Department of Mineral Resource (DMR) which brokered the deal, would recognise the Xstrata Esop as compliant with the Mining Charter requirements, and give Xstrata the necessary credits to meet its 26% black economic-empowerment ownership obligations across both its coal and alloys divisions.
NUM members downed tools on October 17 over the disputed Esop. The strike was suspended on October 26, after special adviser to Minister of Mineral Resources Susan Shabangu and mediator in the dispute, Advocate Sandile Nogxina intervened in the matter.