NUM to stage mass meeting at Cooke as Sibanye readies axe

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SOUTH Africa’s National Union of Mineworkers (NUM) is to hold a mass meeting at Sibanye-Stillwater’s Cooke shafts, west of Johannesburg, on November 1 after the union said some 2,000 employees had been instructed not to go underground at the facilities as retrenchments were due to begin.

“The company has already instructed workers not to go underground as it is preparing to put the operations on care and maintenance,” said the NUM in a highly charged statement in which it blamed the company for focusing on offshore acquisitions instead of creating jobs in South Africa.

“More than 2,000 workers who received the termination letters will attend the mass meeting,” it said. “We are very worried that Sibanye has decided to destroy jobs in South Africa in order for them to finance their new acquisition which is Stillwater in the United States of America,” it added.

“We believe that the more than R20bn spent on that venture should have been used to create jobs where that wealth was generated.” Sibanye, in fact, paid cash of $2.2bn (R31bn at today’s exchange rate) for Stillwater and then changed its name to Sibanye-Stillwater in order to acknowledge its international reach.

The writing was on the wall for the Cooke shafts, however. In July 2016, Sibanye impaired Cooke 4 shaft by about R820m. By October of that year, employees embarked on an illegal strike. Then roughly a year later, Sibanye arrested hundreds of illegal miners and dismissed full-time staff that had assisted the criminal activity.

At the time there were reported threats and intimidation at the Cooke operations which resulted in 16 employees being “seriously assaulted” whilst attempting to report for work. Sibanye had increased security in the areas surrounding the mines and routes to the operations to protect employee safety.

By August, Sibanye announced that it would restructure Cooke and Beatrix West operations potentially affecting 7,500 workers – roughly 13% of its workforce. “Losses experienced at these operations negatively affect group cash flow as well as the sustainability and economic viability of other operations in the Southern Africa region, in this way, posing a threat to more sustainable employment across the region,” said Sibanye in August.

Given the recent history of disruption, NUM’s November 1 mass action is a concern for Sibanye-Stillwater. The company was due to make an announcement on the evening of October 31 regarding the situation at the Cooke shafts.

COAL

The NUM has been in fighting form lately. It issued a press statement earlier today in which  it accused the Chamber of Mines of acting in bad faith regarding wage negotiations in South Africa’s coal sector, first begun in July. The NUM has declared a dispute which has taken talks to the Commission for Conciliation, Mediation and Arbitration (CCMA).

The NUM is demanding a once-off wage increase of R1,100 for 2017 and an 8% hike for 2019, as well as 9% for 2019. Whilst the Chamber’s offer is below this, the issue of whether future wage negotiations would take place under the auspices of the Chamber of Mines appears to have reared its head again.

Coal producers affiliated with the Chamber want to conduct future wage negotiations on a mine-by-mine basis, but this has received kick-back by the NUM which may find its resources stretched by such a negotiating tactic, whilst it also prefers to wield its right to strike in a concerted manner.

“The NUM will only sign a 3-year agreement provided the Chamber of Mines accepts to remain in the Collective Bargaining Forum,” it said in a statement. “They have until Wednesday to change their mindset as we will reconvene under the auspices of the CCMA or face the consequences,” said Peter Bailey, NUM Chief Negotiator in the coal sector.

 

5 COMMENTS

  1. Where do NUM think the R20bn came from for Stillwater? Idiots, it came from overseas because they know it’s a better investment than SA right now. Every promise SA made to SGL they broke and drove away a true SA champion! All your fault SA,NUM.AMCU! Jobs will be lost because you are F%$#@*g stupid and unreasonable! Change and you will see investment come back. Don’t and you will be converting miners to SASSA beneficiaries!

  2. To NUM… You, along with your partners the ANC, are bringing this onto yourselves… Unaffordable increases, no improvement in productivity, supporting illegal miners and illegal strikes…. There are a lot more retrenchments coming your way. In 4 years from now, there will not be a mining industry to speak of in South Africa. No one in his right mind will invest one cent in that bottomless pit…

  3. Last time you guys tried this stunt Neal fired everyone, and with good reason. Image how much faster it’ll happen now with over half the company based in America! So glad their is an executive with balls in this country speaking out what we all know is wrong in the sector! Go for it Neal!

  4. So u guyz, u wañt the rate of crime 2 increase, in this çountry. Because you are living a wealthy lifestyĺe. You dont care about unempĺoyment rate in sa

    • No Sir, you are wrong. We DO care about unemployment, but we are not the government. It would appear as if it is the ANC government who do not care. We run businesses, a business exists first and foremost to make money, otherwise it would not exist. If we do not take the required action, hard as it may be, the whole business would collapse and a lot more people would be out of a job. Smart governments enact policies and laws to make it easier for companies to do business thereby attracting investment and leading to job creation. The ANC government want to suck everything dry, make it difficult for honest people who will not pay bribes to do business, chase away FDI (Foreign Direct Investment) and destroy jobs… They are the ones speeding along our highways in their blue light cavalcades, disrespecting ordinary citizens and looking down disdainfully at us…As long as they are making millions in bribes they do not care about how difficult our lives are….And by the way, taking the farms away and ¨redistributing¨the land will not create ONE job… I do not know how to farm, and very few people will be able to make a decent living on a small piece of land without access to capital

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