Mining job losses requires bold and visionary action from government
9 December 2015
The Congress of South African Trade Unions is deeply alarmed by the latest threats by Anglo American, that they plan to retrench 85 000 workers worldwide. They also threatened to shut down some of their mines during their restructuring process, as a result of excess supply and weak demand of commodities.
This is a calamitous pronouncement that will result in thousands of workers and their families losing their livelihoods and the rate of unemployment rocketing sky high. South Africa will be hit the hardest by this decision because Anglo South Africa employs about 45 000 workers. It will also worsen a bad situation following an earlier announcement by the mining company Lonmin that they will cut 6 000 jobs due to the falling commodity prices and high costs of production.
All of this bears out our assertion, as the federation, that this country is in the grip of an economic crisis and that drastic steps are needed to stem this tide of job losses and mine closures. We expect that the recommendations and proposals of the Mining Industry, Growth, Development and Employment Task Team that met as recently as August this year to deal with retrenchments in the sector will be implemented.
It is not enough to commit to adhering to due legal processes when dealing with retrenchments, when people’s livelihoods and the future of generations are at stake. These mining companies made fortunes and built mining empires on the back of workers and they cannot therefore be allowed to cut and run.