JOHANNESBURG, August 3 (ANA) – The National Union of Mineworkers (NUM) has said that it is deeply worried about the possible retrenchments of around 10,000 workers at Sibanye Gold operations in South Africa.
This comes after Sibanye announced on Thursday that it will enter into consultation with relevant stakeholders in terms of section 189A of the Labour Relations Act regarding restructuring of its gold operations pursuant to ongoing losses experienced at its Beatrix West and Cooke Operations.
Sibanye said approximately 7,400 Sibanye employees at all levels may be affected as a result of the proposed restructuring.
NUM mining coordinator at Sibanye, Kenneth Buda, said the union was shocked and disgusted after it received a Section 189 notice from the miner.
Buda said the number excludes close to 3,000 contractors who are also facing these retrenchments.
“The NUM strongly condemns in the strongest words possible the blackmail unleashed by mining companies led by Sibanye Gold, AngloGold Ashanti and Bokoni Platinum mine in announcing these massive retrenchments,” Buda said.
“The NUM strongly condemns these irresponsible companies. The jobs bloodbath is a clear attack on the working class, communities and the poor, a direct attack on mine workers in particular.”
Sibanye’s initiation of S189 consultations comes after numerous unsuccessful attempts to contain losses at these operations in the Free State province and Westonaria, west of Johannesburg.
The gold miner said losses experienced at these operations negatively affected group cash flow as well as the sustainability and economic viability of other operations in the Southern Africa region, in this way, posing a threat to more sustainable employment across the region.
Sibanye chief executive, Neal Froneman, said the decision to commence with this restructuring process had not been taken lightly.
The South African mining industry continues to be under significant economic and financial pressure. Between 2014 and 2016, the industry made an accumulative net loss of around R50 billion on the back of increasing cost pressures such as the steep increase in the price of electricity, increased labour costs and the increased cost of materials such as steel.
As a result, mining companies have been compelled to restructure to ensure their survival. Between 2012 and 2016, the industry lost around 70,000 jobs as it struggled to remain viable.
– African News Agency (ANA)
