The National Union of Mineworkers (NUM) is accusing Bakubung Platinum Mine of introducing temporary workers through the backdoor at the expense of permanent employees.
This comes after the mine, located near Sun City, announced that it had begun a Section 189 process aimed at retrenching 497 out of 706 employees and had shut down the mine since Wednesday to allow for the talks to continue.
The company, owned by the Chinese-controlled Wesizwe Platinum, announced that its new strategy requires fewer employees to achieve and maintain the targeted production levels, highlighting that maintaining headcount is no longer sustainable. The mine is focused on extracting high-value ore from the Merensky and Upper Group 2 (UG2) reefs.
NUM ‘not consulted’
Livhuwani Mammburu, the NUM spokesperson, confirmed that the union, which represents at least 200 employees at the mine, was not consulted ahead of the decision to begin the retrenchment process but would be having a meeting with mine management on Friday.
Mammburu said the union was fully against the retrenchment process, noting that the mine aims to increase production but, in contradiction, wants to reduce staff.
The mine plans to adopt a strategy to improve production from 1-million tonnes per annum to 3.5-million tonnes per annum, immediately abandoning the initial production plan.
“There is this trend in the mining industry where permanent employees are retrenched as a cost-cutting measure, and they are replaced with contract workers. This is destabilising the workforce because these contractors come with their own people and these employees also do not have any benefits.
“The mine would increase production expectations, and this would put the contractor under pressure to deliver, because they would also be replaced if they don’t. This means that even contracted employees would also suffer because they are underpaid but expected to deliver,” said Mammburu.
He said this strategy also tends to drag down the mining health and safety because the contractor would be focused on production more than the health or the safety of employees.
“This trend is used to save costs for the mine and it is expanding across various mines. We stand opposed to it because it is not for the benefit of the employees,” said Mammburu.
Headman of Bakubung Ba Ratheo Royal Family, Kgoro Matshitse, told Sunday World that the royal family were never informed about the looming retrenchments and fears fear that this move would push the community into further poverty and social exclusion.
Matshitse said the mine pulled a similar stunt in the 2023/24 cycle, even after discussions then that retrenchments would further harm the mine and the community.
“For us as the community, employment of our Locals (labour), SMMEs wil help boost the Local Economic Development of out Village. Employment of Local Labour and Empowerment by partnerimg with local SMMEs in conjuction with Social Labor Plan. Corporate Social Investment will create an environment for a village local economic empowerment.
“On behalf of the leadership of the community and the community in general, we reject this abominable intentions by Bakubung Platinum Mine,” said Matshitse.
- Bakubung Platinum Mine plans to retrench 497 of its 706 employees, shutting down temporarily to negotiate, citing a new strategy requiring fewer workers despite aiming to triple production.
- The National Union of Mineworkers (NUM) was not consulted prior to the retrenchment announcement and opposes the move, accusing the mine of replacing permanent employees with contract workers to cut costs.
- NUM warns that relying on contract workers undermines workforce stability, reduces employee benefits, and worsens health and safety conditions due to production pressure.
- The Bakubung Ba Ratheo Royal Family was not informed of the retrenchments and fears the job losses will exacerbate community poverty and social exclusion.
- The community leadership rejects the mine’s plans, emphasizing the importance of employing local labor and small businesses to support local economic development and social investment.
