Solidarity bemoans retrenchment crisis in the mining sector

10 December 2015

Trade union Solidarity today expressed concern about the numerous retrenchment processes that have been announced in the mining industry shortly before Christmas. Currently, thousands of employees are facing retrenchment at various mining companies in South Africa.

Solidarity recently received section 189 notices from Exxaro’s Arnot Mine and South32’s Hotazel manganese mine. Moreover, the trade union has been involved in numerous other retrenchment processes over the past few months, including those at Lonmin in Rustenburg and at Thsipi Borma’s manganese mine outside Hotazel. In addition, Kumba Iron Ore has also indicated that its Sishen Mine has experienced several setbacks this year brought about by weakened market conditions, among others.

According to Solidarity’s Head of the Energy Industry Deon Reyneke, consultations with Exxaro will only start officially in January, while consultations with Lonmin and Thsipi Borma have already reached an advanced stage. The consultation process with South 32 has been completed and Solidarity managed to negotiate favourable severance packages for its members affected by the process. “Through these consultations we are trying to limit retrenchments to an absolute minimum,” Reyneke said.

Globally, the mining sector has been brought to its knees by adverse market conditions. This is, among others, evident from Anglo American’s shocking announcement that it intended to cut its workforce by 63% worldwide as part of a radical restructuring process.

Meanwhile, Solidarity will implement its social plan, which includes financial advice, legal representation and emotional support to members at those workplaces where retrenchment processes are currently underway.

Issued by Deon Reyneke, Head of Energy Industry, Solidarity, 10 December 2015