This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
BusinessLive reports that Lonmin’s share price fell 8.85% to R7 on Wednesday morning on fears its largest union will block its proposed acquisition by Sibanye-Stillwater.
On Tuesday, the Association of Mineworkers and Construction Union (Amcu) asked the Competition Tribunal to make it a condition that the merged company should not be allowed to cut more than 10,000 jobs. Lonmin has proposed 12,459 job cuts at mines that will run out of commercial deposits in the next three years. The platinum producer has already cut about 2,000 jobs to weather a rout in prices. The magnitude of the planned cuts “warrant that the transaction be prohibited”, Amcu said in submissions to the tribunal. The union also argued that the outlook for platinum group metals had improved and a weaker rand meant Lonmin could operate profitably. If the merger did not take place, Lonmin would require $450m-$500m to remain in operation, CFO Barrie van der Merwe said at the tribunal hearing on Monday. The company was not in a position to return to the market to raise more capital, he said. The Competition Commission has recommended the acquisition. The tribunal is expected to give its final ruling on the matter once public submissions have been concluded.
- Read the full original report by Felix Njini at BusinessLive
- Read too, Sibanye's 'Mr Fixit' to give clarity on job cuts moratorium, at Business Report
Get other news reports at the SA Labour News home page