Job losses cause for concern in SA mining sector

South African mining

South African mining

by SAVIOUS KWINIKA
Africa Editor
JOHANNESBURG, (CAJ News) – THE National Union of Mineworkers (NUM) of South Africa has expressed concern at the massive job losses in the industry amid fears more jobs would be lost in the foreseeable future.

It has been reported that in 2015 alone, some 10 000 jobs had been lost through retrenchments mainly in the platinum and gold industry.

The considerable retrenchments follow the reported loss of 35 000 workers between 2012 and last year.

Addressing NUM Members in Johannesburg, the union’s Deputy General Secretary, Tshimane Montoedi, said the organisation was “deeply concerned” by the massive job losses.

The official called for an amicable economic solution to halt the losses.

“NUM is concerned by the current coordinated mass retrenchment drive by major companies in the mining industry, this with underlying deliberate circumvention of current regulatory framework as stipulated by Section 52 of the MPRDA( Mineral and Petroleum Resources Development Act) 2002,” said Montoedi.

“Since the start of 2015, the whole industry has retrenched between 5000 -10 000 jobs. As we speak there are approximately 30 companies that have issued us with Section 189 notifications, with a minimum of between 15 000 and 20 000 jobs to be lost as per companies’ calculation.”

Montoedi said NUM called for the government to schedule an urgent Mining Industry Growth Development and Employment Task Team (MIGDETT) partnership between the Department of Labour and mining companies to avert further job losses.

This comes in the wake of Delinquent Optimum Coal/ Glencore Mines announcing plans to retrench 1 000 employees this coming weekend citing viability challenges. Platinum mining giant Lonmin hinted its position to shed off some jobs before end of this year to cut operational costs.

Mining companies have also raised concern at the long running strikes, which they blame on union, which also impacted on output.

Last year, a five-month strike by the Association of Mineworkers and Construction Union (AMCU) cost the platinum industry some 1,2 million ounces of production, worth about R24 billion.

– CAJ News

 

 

 

Short URL: http://cajnewsafrica.com/?p=6213

Posted by on Jun 4 2015. Filed under Featured, Finance, Finance & Banking, Mining, Mining & Engineering. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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