Job cuts wrack SA gold miners

I-Net Bridge & Sake24 | Tue, 17 Nov 2009 13:03
[miningmx.com] -- DRDGOLD plans to retrench 1,300 mineworkers, trade union Solidarity said on Tuesday.

The marginal gold producer last week applied for and was granted judicial management over its 74%-owned Blyvooruitzicht (Blyvoor) mine, which is on the brink of liquidation.

Solidarity said it had on Monday lodged an application with the Labour Court for an urgent interdict against DRDGOLD in a bid to get the company to follow due process regarding its planned retrenchments.

The trade union said the company has refused several applications by Solidarity to be involved in the Section 189 process at the group's Blyvooruitzicht mine near Carletonville.

"In terms of the Section 189 notice, the company plans on retrenching 1,300 of the mine's employees," said Solidarity in a statement.

"Although there has been no consultations whatsoever with Solidarity regarding the retrenchments, Solidarity members have already been notified of the retrenchment and have been retrenched," the trade union said.

Solidarity, which represents about 115 members at the Blyvooruitzicht mine, maintains that the company did not follow a fair process, as prescribed by the Labour Relations Act.

"The application for an interdict is an effort to have the Section 189 process declared null and void in order to ensure that the process has to start anew," explained Solidarity spokesperson Jaco Kleynhans.

"The company has until this coming Friday to submit their opposing statement," Kleynhans said.

Solidarity is hoping to get a ruling on this urgent matter by next week.

It's not the only mining company looking retrenching workers. Harmony Gold has taken the first step towards closing some of its more vulnerable shafts because of rising costs and the low rand gold price.

Marginal gold mines throughout the country are under pressure owing to the bleak market conditions. The pressure intensified in July this year with Eskom's 31.3% tariff increase and a simultaneous wage hike of around 10%.

The trade unions at Harmony have received notice, in terms of Section 189 of the Labour Relations Act, indicating that up to 2,097 workers might be retrenched.

The anticipated retrenchments will be mainly at Harmony's Evander mine in Mpumalanga, where many shafts are being operated at a loss.

But no date has so far been set down for the required negotiations with the unions, says National Union of Mineworkers spokesperson Lesiba Seshoka.