In April and May 2007, for the first time in the history of the Porgera Mine, members of the Porgera landowner community forcibly closed the gate to the mine, and mine operations ceased. The main grievance was a perceived unfairness associated with a temporary relocation (for safety reasons) of members of the Apalaka community. While negotiations with those affected by the temporary relocation were in progress, other non-affected individuals, motivated primarily by the opportunity for political gains in advance of the general elections in July 2007, became involved. In spite of this interference, negotiations with the landowners continued and, with the assistance of several government officials, the situation was resolved peacefully and work at the mine recommenced.
In October 2007, Barrick Tanzania and TAMICO, the labour union representing site workers, agreed to a mediation process to resolve outstanding labor issues at Bulyanhulu. The mediation process began on October 24th. The following day 1,000 of the company’s 1,971 workers walked off the job. When involved in a formal mediation process the law stipulates that the union is required to give the employer 48 hours notice before engaging in a strike action; therefore the strike was considered illegal. Barrick management proceeded to issue a notice that any employees that did not return to work would not be guaranteed ongoing employment. In releasing these workers from their employment, Barrick stated that it would allow them to reapply for their jobs and, subsequently, the company has rehired several hundred employees.
One of the main issues leading to the dispute involved employee health care benefits. Barrick’s ongoing policy is to provide healthcare treatment to all employees and families at mine site clinics free of charge, and to provide additional no-cost insurance which covers treatment for non-work related injuries and illnesses at other medical centers. As well, each employee is paid an allowance of TSh 36,000 [approximately 30 USD] per month to cover other costs relating to non-work related sickness (regardless of whether they are sick or not). Unfortunately, during labor negotiations it was incorrectly understood by some employees that all treatment costs related to non-work illnesses were being cut from their health coverage.
Following the incident we have improved our internal communication channels, particularly with union representatives, in order to prevent further miscommunication.
Barrick provides employee health care coverage which far exceeds Tanzanian standards and continues to respect the labor rights and rights of free association of its employees. We also have comprehensive human resources development programs in place, including succession planning for nationalizing expatriate positions, an employee housing scheme to enable home ownership by employees, an employee assistance program, and a range of other initiatives that greatly benefit employees and their families.