[miningmx.com] — TRADE union Solidarity warned it would not tolerate retrenchments due to the takeover of Simmer & Jack by Village Main Reef Gold Mining, a spokesperson said on Tuesday.
“… no retrenchments that may result from the planned takeover will be tolerated,” said Ilze Nieuwoudt in a statement. She called for urgent talks with Village CEO Bernard Swanepoel.
“A lot will have to happen before this takeover can be finalised and before that happens, clear answers must be obtained concerning Village’s plans,” she said.
However, Swanepoel told Sapa he had not heard anything from the union.
“If it was so urgent I would have thought they would’ve phoned me… I spoke to them last week,” he said.
The takeover was supposed to lead to job creation, rather than job losses, he said.
“In the putting together of the two businesses… we had exactly the opposite in mind [to retrenchment]… the intention is not to destroy jobs but to longer-term save jobs.”
The union said it had no objections to Village’s planned takeover of Simmers, which was announced on Monday, as long as the interests of employees were protected.
Nieuwoudt said the Competition Commission must also investigate the process before it could go ahead.
“The investigation must determine, among other things, how employees may be affected by the takeover.”
Swanepoel said “the process of approvals obviously [includes] submissions to the Competition Commission… including the statement of our intentions on job creation”.
The proposed merger would result in a diversified mining company operating in the gold, platinum group metals, uranium and antinomy (used as a hardening alloy for lead) sectors, the two companies said on Monday in a joint statement.
Village would acquire 100% of Simmers’ assets including its Buffelsfontein, Hartebeestfontein and Tau Lekoa mines. It would also acquire about 33% of the issued share capital of First Uranium, owned by Simmers.
