Bushveld Minerals Ltd (LON:BMN) said an unofficial strike at its Vametco vanadium operation in South Africa has been resolved and workers have started safely returning to work.
An agreement was reached following discussions between management and the Association of Mineworkers and Construction Union (AMCU), the official union.
“The impact, if any, of these five days of industrial action on production will be provided in the upcoming quarterly production report,” said the AIM-quoted company.
Care and maintenance activities were conducted throughout the period to enable a smooth start-up.
The strike was related to lower-than-expected payments under a recently signed Employee Participation Plan (EPP).
Following the talks, any EPP payments will be determined by the results of Vametco, and, where applicable, paid as a function of the company's profit performance; workers will be given a payment to cover the loss of production bonuses during a 35-day maintenance programme; no work no pay principles apply and there was an acknowledgement of the illegal nature of the industrial action and the recognition of the company's rights in pursuing appropriate remedies.