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Sowetan reports that a war of words has erupted between mineral resources minister Gwede Mantashe, the National Union of Mineworkers (NUM) and mining company Gold Fields, which plans to lay off more than 1 500 workers.
Gold Fields has been hauled over the coals over its massive job cuts announcement yesterday, allegedly without following proper processes, which include giving the minister notice as per section 52 of the Mineral and Petroleum Resources Development Act.
“We are beginning to notice a worrying trend where some mining companies do not meaningfully engage with the department on their restructuring plans, and only brief us as a mere formality or tick-box exercise, ignoring processes outlined in the law, which are binding to every mining rightholder,” Mantashe said.
The company announced that it planned to retrench around 1 100 permanent employees and 460 contractors from its workforce of 4 550 at its South Deep mine, west of Johannesburg. The mine is one of the largest and deepest gold mines in the world.
The announcement followed similar job cut announcements by big platinum producers Impala and Lonmin that will jointly cut more than 25 000 jobs in the next few years.
Livhuwani Mammburu, NUM spokesperson, said mineworkers had become “sacrificial lambs” in mining companies’ quest for profit. “This is a bloodbath of job losses in the mining industry … NUM is very worried about Gold Fields’ decision to retrench workers,” he said.
Gold Fields spokesperson Sven Lunsche said they differed with Mantashe and the union on the interpretation of the laws.
Gold Fields had announced that persistent issues at the mine that influenced the decision to cut jobs included rising operating and overhead costs.
Mantashe said he had met with Gold Fields executives on Monday where he was briefed on the company’s plans and where he “requested the company to follow the processes outlined in Section 52”.
“It is our view that the spirit in which Gold Fields is engaging contravenes the agreed approach and the laws governing the sector,” Mantashe said.
Lunsche said prior to the public announcement of their restructuring, they had met with the leaders of the representative unions NUM and UASA, as well as Mantashe.
“This was to advise all parties of the impending processes … it is our intention to adhere to both the spirit and the letter of the LRA [Labour Relations Act] in seeking mitigating solutions to the challenges faced at South Deep.”
The original of this report by Isaac Mahlangu appeared on page 2 of Sowetan of 15 August 2018
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