Trade union federation Cosatu wants Minister of Mineral Resources and Petroleum Gwede Mantashe to intervene in the planned retrenchment of more than 1 100 workers by mining and energy company Seriti Resources.
The company announced this week that it had embarked on a Section 189A consultation process, which is expected to result in the retrenchment of 1 137 employees.
The company said its multi-product operations at Middelburg Mine Services and at Klipspruit South-East pit, Mpumalanga, “are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability”.
“Further, these mines continue to be adversely impacted by, amongst others, Transnet under-performance and generally market volatility.”
The mines are located on the Mpumalanga Highveld, where coal mining remains the lifeblood of the local economy.
Seriti Group CEO Mike Teke said the company recognises “that this exercise will negatively impact our workforce and local communities”.
“We have not taken this step lightly. We will continue to engage openly and constructively with our employees and organised labour to ensure the best outcome for all concerned.”
The announcement by Seriti comes in the wake of revelations by Statistics SA in its Quarterly Labour Force Survey that there was an increase of 158 000 in the number of unemployed to 8,4-million during the second quarter of this year.
In its July 2024 Mining: Production and sales for June report, Stats SA noted that production in the sector decreased by 3,5% year-on-year in June 2024. Coal mining decreased by -3,3%.
Cosatu has accused Seriti of being a “callous employer with exploitative intentions and relentless greed.”
“What is beyond shocking is the company’s replacement of permanent, highly skilled employees with contractors to fulfil its main objective of exploitation and to maximise profit,” Cosatu spokesperson Zanele Sabela lashed out.
Sabela said Seriti Resources “has clearly demonstrated an unsavoury attitude towards collective bargaining and trade unions in the name of adopting a so called ‘New Business Model’ after taking the reins from Anglo and South 32.”
“To impulsively embark on a jobs bloodbath at the expense of hundreds of workers who have families to feed in a strained economy is vicious,” Sabela said.
Sabela called on Mantashe to intervene, saying the federation trusts he will “heed our joint call with our vigilant affiliate, NUM, and engage productively to save the jobs of these employees”.
