Today's Labour News

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lonminlogo thumb medium90 90Reuters reports that platinum producer Lonmin plans to cut spending on social and labour projects and freeze "non-critical recruitment", part of an array of measures to save cash.  

This was disclosed in an unpublished presentation to stakeholders earlier this month in which the company signaled it would stop all discretionary spending and save R250m via energy and water initiatives.  It also reiterated plans to cut capital spending.  Cutting expenditure on social and labour plans (SLPs) could be problematic as mining companies are required to meet certain obligations to provide housing and other services to the communities around their shafts to maintain their operating licences.  In September, Lonmin said it had been informed by the Department of Mineral Resources (DMR) that it had failed to meet some social and labour obligations, although it added that it did not think its operating licence was in jeopardy.  Lonmin spent R270.8m on SLPs during the 2016 financial year, the last year for which it provided full details.  Lonmin spokesperson Wendy Tlou said they were engaging with the DMR on the proposed adjustments to the plans.  She also said "non-critical recruitment" involved "positions we can delay or do without for some time compared to critical roles you may need immediately for operational reasons".

  • Read this report by Ed Stoddard and Zandi Shabalala in full at BusinessLive


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