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Mediation vs. Arbitration in South Africa

Tuesday, October, 11, 2011


Mediation vs. arbitration has become a subject of interest to mineworkers in the nation of South Africa, where the National Union of Mineworkers has received a "certificate of non-resolution" from the Commission for Conciliation, Mediation, and Arbitration.  The dispute that has yet to be resolved involves the diversified mining firm Xstrata, whose Employee Share Ownership Program has caused a considerable level of conflict among employees.

 

Mediation vs. Arbitration May Give Way to a Strike

 

The point in contention regarding the ownership share program involves the distribution of benefits to employees.  The Union wants to see all employees receiving an equal "piece of the pie," but the point of view of Xstrata is that employees in management positions and above should receive more benefit than the ordinary mine worker. 

 

The certificate of non-resolution may lead to a strike that is already in the planning stages.  The Union management has announced that it will discuss the issue with its membership and shortly announce a date for any industrial action to be undertaken.

 

According to Songezo Zibi, a spokesperson for Xstrata, "“We proposed preferential share ownership for all employees, based on the employees’ job levels A, B, or C.  We had already been in discussions with the unions for 15 months and had now reached a deadlock.”

 

He added that any strike would most likely have an impact on all company operations.

 

It is not known if further workplace mediation will be attempted