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Falgold seeks to extend pay cuts

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STRUGGLING gold miner Falgold on Friday said it was looking to extend the 25% wage cut it effected last year, saying it was still in a loss-making position.

The company, which is owned by Canada-listed junior miner New Dawn, posted a $12,5 million loss for the year ended September 30 2013 citing poor gold prices, the temporary closure of Dalny Mine and persistent labour issues.

Falgold slashed salaries by 25% in October last year initially for three months, citing operational challenges, but extended the cuts in January.

An official said company wanted the extension for an indefinite period.

“There is no improvement and revenue has remained subdued so we cannot meet the salary demands,” the official said.

He said adjustments would be made only after improved production.

Falgold workers have challenged the pay cuts and have approached the labour court seeking recourse after an arbitrator threw out their case in February.

Falgold owns Golden Quarry, Dalny and Venice mines.

– The Source

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