<% FROM="\InformationForInvestors\AnnualReport98\pages\review2.htm" SITE="anglogold-main" %> Review of operations continued
 

Bambanani mine near Welkom in South Africa has a radio station which broadcasts a mix of news, interviews and safety tips in five languages. In the studio is senior human resources officer, Allison Sutherland-Tomassi.

 

 

Review of operations
continued

Radio Station - Picture by Philip Mostert

 

Industrial relations
In South Africa, as a result of the 1997 wage settlement between the Chamber of Mines and representative trade unions, productivity agreements were introduced at the different operations during 1998. These were either in the form of shift rosters, which returned the operation to a six-day week as opposed to an 11-day fortnight, or additional production shifts.

space60.gif (56 bytes)At Ergo, the 1999 annual wage review focused on three components: inflation-linked adjustment to wages, team efficiency and individual merit awards. Agreement was reached on a two-year wage deal with a wage adjustment of between 9,25 and 9,35 per cent. The Profit Share Scheme was replaced with an Efficiency Bonus Scheme focusing on better-than-budgeted operating profit (on a rand per kilogram basis). All parties also re-committed themselves to the successful introduction of a merit award system at Ergo.

Prospects for 1999
The flattening of the hierarchical structures in management and supervisory levels will receive high priority during 1999. This initiative will improve the lines of communication and overcome any overlap in operational accountabilities and responsibilities.

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