Solidarity wants to prevent hardship due to layoffs at Sibanye-Stillwater

18 September 2023

Solidarity is concerned about the fate of almost 3 000 Sibanye-Stillwater mineworkers whose jobs may be in jeopardy soon.

The mining giant’s announcement that it intends to lay off a total of 2 389 workers and 581 contract workers from the Kloof 4 shaft at Carletonville could not come at a worse time for the employees.

The mining company explained how alleged losses and a decrease in mineral reserves have forced it to take the step of issuing layoff notices.

Despite that, Solidarity Deputy General Secretary Riaan Visser said Sibanye's excellent half-yearly results in effect contradict the necessity for large-scale layoffs.

“Amid already challenging circumstances, these employees are faced with the uncertainty of whether they will still have a job by the end of 2023.

“However, in its recent half-yearly results, the company boasted about the turnaround in its gold production, which showed a 117% improvement over the first half of the year. It was said that production in this division met expectations and even yielded good profits,” Visser said.

Although it is argued that pressure on Kloof's units and concerns about financial sustainability necessitate the layoffs, Solidarity is not convinced that this justifies the layoffs.

In light of the financial results of Sibanye's gold division and the existing alternative of cross-subsidising gold and smaller profits for the gold giant, the rationale should be questioned.

“Although a justifiable question to ask here is whether we are dealing with a gold giant that is gobbling up profits at the expense of employees,” Visser said

Solidarity says it will actively participate in the consultation process with the aim of preventing layoffs, or at least limiting layoffs.

According to Visser, workers are already experiencing huge financial pressures that ultimately will affect the wider community.

“Research has shown that for every mineworker who is laid off, 10 dependents are affected. This highlights how serious the consequences can be, and it provides enough reason why Solidarity does not treat any layoffs in the industry lightly,” Visser said.

The section 189 process will be facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA), and a date for the first round of the consultation process has yet to be confirmed.

Issued by Riaan Visser, Deputy General Secretary: Mining, Agriculture and Chemical Industry, 18 September 2023