SOUTH AFRICA NEEDS A JUST TRANSITION
The National Union of Mineworkers (NUM) said the country could face major job losses in the coming months.
File Picture: Siphiwe Sibeko / Reuters
The National Union of Mineworkers (NUM) said the country could face major job losses in the coming months.
The organisation said that it was shattered and disappointed by the high levels of possible job losses due to retrenchments in some of the companies, in particular mining.
“To this date, close to 10,000 jobs stand to be lost between now and January 2024,” NUM said.
This is a huge blow, according to the union, given how much unemployment the country is facing.
A number of precious mental mining companies have been looking at cutting thousands of jobs in SA.
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The main reasons for this have been, firstly, the fact that the price of metals has declined, and secondly, the huge export congestion that has resulted at our ports and rails.
Anglo American Plc is one such company that is facing these issues and has been mulling the fact that they have to reduce their employment capacity.
According to BusinessTech, in 2023, the price of major precious metals like platinum and palladium dropped by around 11% and 40%, respectively.
In October, Sibanye-Stillwater said that given the metal price decline, they could let go of four or their mines that are not making a profit, and this could lead to more than 4,000 jobs being cut.
In September, the mine said that it had initiated a Section 189 process with unions at its Kloof 4 shaft in Carletonville.
The mine said that close to 3,000 jobs were on the line.
That means that more than 7,000 jobs could be lost at just one mining company.
On Monday, Wesizwe Platinum said it is planning to restructure its “bloated” Bakubung mine in the North West.
Wesizwe Platinum has 761 staff members at the Bakubung mine, and 571 employees could lose their jobs.
BE CONSIDERATE
The NUM is calling on businesses in all sectors to be “considerate of the situation in the country as the level of poverty continues to be a worrying factor”.
“As a trade union, we are ready to constructively engage in a process that will protect jobs, prevent future job losses, and prolong the jobs of those who are already employed. We call upon companies to launch new projects. These companies should not wait for the so-called right time while workers are struggling.“
It has also cited that the energy crisis in SA has been a reason used by a number of companies to issue Section 189 notices.
“Clearly, for as long as there is still no solution to the electricity challenges, we will continue to lose jobs. We are calling on the government to proactively attend to this as a matter of urgency,” the union said.
South African Mining Sector Braces for Massive Job Losses
Published November 28, 2023
By Miriam Matoma
Potential Job Losses in South African Mining Sector:
The article highlights the imminent threat of substantial job cuts, estimated at around 10,000 within the next two months, across various companies operating in South Africa's platinum group metal (PGM) sector.
Factors Driving Workforce Reductions: Declining prices of crucial metals like platinum and palladium, coupled with operational disruptions and escalating operational costs such as electricity and water, have prompted major mining companies like Anglo American Platinum, Wesizwe Platinum, Sibanye Stillwater, ArcelorMittal, and Impala Platinum to consider restructuring and downsizing.
Industry Response and Market Impact: Companies have initiated consultations and restructuring plans, with Wesizwe Platinum already exploring significant job cuts at one of its mines, causing share prices to plummet. While some firms offer voluntary separation packages, the overarching impact of these potential job losses on South Africa's employment landscape and economy is profound and concerning.
The National Union of Mineworkers (NUM) in South Africa has issued a dire warning, indicating that approximately 10,000 jobs within the mining sector are at risk of being axed in the upcoming two months. This announcement casts a dark shadow over the nation’s already challenging employment landscape, leaving workers and their families in distress during what should be a celebratory festive season.
The distressing revelation emerges against the backdrop of a tumultuous period for companies operating within the South African platinum group metal (PGM) sector. A confluence of factors, including substantial drops in metal prices and persistent operational disruptions, has propelled several prominent entities—Anglo American Platinum, Wesizwe Platinum, Impala Platinum, and Sibanye Stillwater—to contemplate substantial workforce reductions.
The plummeting prices of crucial precious metals like platinum and palladium have significantly impacted the profitability of these companies, with declines of approximately 11% and 40%, respectively, over the course of this year alone.
Anglo-American Platinum made headlines recently by signaling potential staff reductions at two of its South African units. However, the extent of these cuts remains undisclosed pending further consultations.
Wesizwe Platinum, partially owned by the Chinese group Junchuan Group International Resources, has initiated discussions to potentially slash 571 out of 761 positions (75%) at the Bakubung platinum project mine in the North West province. The company stressed the absence of viable alternatives and the necessity to implement measures to bolster efficiencies and pave the way for Bakubung’s profitability and growth.
The repercussions of these announcements reverberated through the financial markets, evident in Wesizwe’s share price plummeting by over 13% on the JSE.
Sibanye-Stillwater, in an October declaration, unveiled plans to restructure its PGM operations, impacting 4,095 full-time employees and contractors across various mining shafts. The company attributed this restructuring to escalating electricity and water costs coupled with the declining prices of PGM.
ArcelorMittal, not immune to the industry’s turmoil, confirmed deliberations about potentially cutting around 3,500 jobs at its Vereeniging and Newcastle plants. This underscores the widespread impact of economic challenges on multiple sectors within South Africa.
Impala Platinum, earlier this month, announced its proposal for “voluntary job cuts” at its Rustenburg mining complex in the North West province. The exact number of job cuts remains undisclosed, although the company’s spokesperson highlighted the earnest efforts to curtail expenses, citing labor as a significant cost factor.
In the face of these challenges, companies are exploring various avenues to trim costs, with labor being a focal point through the provision of voluntary separation packages. The evolving situation within the mining sector casts a somber outlook on the immediate future, exacerbating the already alarming unemployment levels in South Africa.
As the industry grapples with these adversities, urgent measures and sustainable strategies are imperative to safeguard jobs and foster a path toward economic recovery. The National Union of Mineworkers remains steadfast in its commitment to advocating for the welfare of workers and seeks viable solutions in collaboration with stakeholders to mitigate the looming crisis gripping the mining sector in South Africa.
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