Tharisa plc (LON:THS) has concluded a market-related two-year Collective Agreement on Substantive Terms and Conditions of Employment with the Association of Mineworkers and Construction Union (AMCU), the recognised trade union at the Tharisa Mine in South Africa.
The AIM-listed group said the agreement is effective from 1 July 2018 until 30 June 2020, and applies to employees who are subject to the bargaining unit at the Tharisa Mine.
The company added that the successful conclusion of the agreement is a positive development for the Tharisa group and the affected employees.
It pointed out that the negotiations were conducted in a constructive manner, and "we commend our employees for continuing to work uninterrupted throughout the negotiation process, ensuring that Tharisa maintained its operating performance.
The firm said the agreement “underpins the ongoing stability of Tharisa's labour relations and allows the Tharisa Mine to focus on growing the business for the benefit of all stakeholders.”
In a note to clients, analysts at Peel Hunt said: “This seemed to be a constructive set of discussions which bodes well for ongoing relations between management and the mining employees, particularly given that the mining employees were absorbed into the Tharisa group in July 2017, part way through the previous contract.
“The plant employees are under a different wage agreement which we think will be negotiated next year.”
Peel Hunt reiterated a ‘buy’ rating and 210p price target. In late morning trading, Tharisa shares were 4.7% higher at 112.50p.
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