Today's Labour News

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lonminlogo thumb medium90 90Business Report writes that platinum producer Lonmin, which is being bought by Sibanye-Stillwater, announced on Monday that it would cut thousands of jobs in the current financial year as part of its plans to release 12,600 workers in the next three years.  

Lonmin CEO Ben Magara said at a results presentation that the group would retrench 3,700 workers in the current financial year.  “The section 189 process commenced, resulting in 1,993 employees and contractors being impacted during this year, of the 3,700 jobs we expect to be impacted in the current year, including through natural attrition, with a net reduction in headcount of 1,504,” Magara indicated.  The miner has been battling weak global platinum prices and soaring operating costs in SA.  “The challenging 'lower for much longer' platinum pricing environment is creating long-term damage to an already ailing industry, which has sacrificed at least 26,000 jobs in the last five years and continues to under-invest in its future,” Magara lamented.  Lonmin’s ability to remain a going concern over the next 12 to 18 months had “material uncertainties”, said CFO Barrie van der Merwe.  

National Union of Mineworkers (NUM) spokesperson Livhuwani Mammburu said the union was concerned about the impending retrenchments at Lonmin and added:  “They must start retrenching their executives, who earn millions.  We call on the Department of Mineral Resources to intervene and salvage jobs at Lonmin.”

  • Read this report by Kabelo Khumalo in full at Business Report
  • Read too, Consolidation needed to save jobs, says Lonmin, at Mining Weekly
  • And also, Reserve Bank approves Sibanye's buyout of Lonmin, at Mining Weekly

Get other news reports at the SA Labour News home page