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Placer Dome Faces World Union Campaign Over South African Sackings

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14 July, 2005ICEM News release No. 60/1999

Placer Dome, the world's third-biggest gold miner, faces a global trade union campaign over its retrenchment of 2,895 South African workers.

South Africa's National Union of Mineworkers (NUM) will table a resolution to that effect during the World Gold Forum in Durban on 28 October.

At the global level, the NUM is affiliated to the 20-million-strong International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM). The ICEM is organising the World Gold Forum, which will bring together representatives of gold industry unions and companies and of gold consumers. Together, they will examine the future of the sector and propose action to safeguard it.

The forum precedes the ICEM World Congress (Durban, 3-5 November), which will be mapping out a trade union response to globalisation.

Through the ICEM, the NUM is already receiving pledges of support from unions in other countries where Placer Dome operates. This will include picketing in Australia to coincide with an NUM rally in South Africa on 31 October.

"Placer Dome is a transnational," commented NUM General Secretary Gwede Mantashe in Johannesburg today, "so we in the unions cannot fight separate battles. We can win only if we campaign globally. The problem facing us today is a problem for our colleagues in the unions of all countries where Placer Dome operates. That's why, at the World Gold Forum, we will be asking the ICEM to declare a global campaign on Placer Dome."

Placer Dome, which also produces significant quantities of copper and silver, has operating mines in Australia, Canada, Chile, Papua New Guinea and South Africa.

In recent years, it has been involved in a number of environmentally controversial projects. These include planned operations in Central and South America (Costa Rica, Nicaragua and Venezuela), as well as mines in Papua New Guinea and the Philippines.

The Marcopper mine, a Philippines site part-owned by Placer Dome, discharged tons of toxic mill tailings into the Boac river in 1996. Since then, the mine has ceased to operate. ICEM Philippines affiliate the National Mines and Allied Workers' Union (NAMAWU) carried out a study on the social impact of this disaster, which was widely publicised in the country. The study, which highlighted the plight of the communities affected by the accident, was sponsored by the ICEM with the support of donor organisations.

In South Africa, the NUM is organising a rally on 31 October to protest against Placer Dome's sackings. The rally will be held at Western Areas, the site near Johannesburg where Placer Dome operates.

Placer Dome originally argued that the South African sackings were necessary because of the low gold price. Since the recent massive recovery in the price of gold, the multinational has changed its story and is now blaming the retrenchments on the NUM's refusal to accept the introduction of full calendar operations (FULCO) on the company's own terms.

Job losses on this scale are a potentially explosive issue in South Africa, which has an unemployment rate of over 30 percent.

"Our South African brothers and sisters are right to oppose these retrenchments," said ICEM Vice-President John Maitland in Sydney today. He is National Secretary of ICEM Australian affiliate the Construction, Forestry, Mining and Energy Union (CFMEU).

"I will certainly address the NUM rally and bring to it a message of solidarity from workers in Australia and worldwide," Maitland said. "The CFMEU will also organise a picket of Placer Dome offices in Australia on the morning of 1 November - just a few hours after the South African rally."

"The ICEM has considerable experience of coordinating global campaigns against irresponsible multinationals," stated ICEM General Secretary Vic Thorpe in Brussels. "We shall not hesitate to use that expertise in the case of Placer Dome if needed."

"Placer Dome must live up to its global social and environmental responsibilities," NUM President James Motlatsi insisted. He is ICEM Vice-President and President of the ICEM's African region.

"If the company does not shoulder its responsibilities," Motlatsi warned, "then the ICEM together with its affiliates in Placer Dome mines worldwide will apply global pressure."