SERITI Resources, a privately-held South African coal miner, plans to retrench 1,143 employees as some of its operations are “not commercially sustainable”.
Middelburg Mine Services (MMS), Klipspruit South-East pit together opencast activities at Klipspruit “are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability”, said Seriti Resources group CEO Mike Teke, confirming an article published by BusinessLive earlier today.
Commenting in a statement, Teke said a Section 189A consultation process — under the auspices of the Commission for Conciliation, Mediation, and Arbitration (CCMA) – began on September 16. Up to 1,241 roles will be affected by the process of which 1,137 employees “are likely to be retrenched” at the mines and corporate services team, he said.
“We recognise 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,” Teke said.
Market volatility, problems in meeting volumes at Transnet, the state-owned rail and ports company had destabilised the mines, Seriti said.
According to the National Union of Mineworkers, Seriti intends to replace affected employees with contractors – a development that its highveld regional chairperson Malekutu Bizzah Motubatse said was “disrespectful”.
“This is declaration of war. We will be meeting our shop stewards from next week Thursday. We are mobilising for the mother of all strikes,” Motubatse told BusinessLive. NUM represents about 3,000 of the estimated 5,000-strong staff complement at Seriti, according to BusinessLive.
