Implats warns of job losses, R2bn in lost revenue

[miningmx.com] – IMPALA Platinum (Implats) issued its sternest warning
yet that a six-week strike at its Impala Lease area in Rustenburg, which had cost it
R2bn in revenue and was aimed at destabilising the company, could result in
permanent job losses as it struggled to reopen certain operational areas.

It also suggested that the strike had been partly commandeered by criminal elements
and that it was an assault on the authority of the National Union of Mineworkers
(NUM), which is the only recognised union at the mine.

Said Implats: “The strike has now entered its sixth week and Implats has lost
100,000 platinum ounces [Pt oz], which is equivalent to a loss of revenue of around
R2bn. This will impact our operational ability to restart all the previous work areas,
and clearly, the longer it takes to resolve this illegal work stoppage, the more jobs
will be impacted.’

The strike was initially said to have been started by some rock drill operators who
were disgruntled about a wage adjustment given to workers employed in the miners
category.

Implats said this was only an aspect of the issue which fell under the umbrella of a
zero-harm strategy at the mine that had been part of last year’s wage negotiations.

“It is regrettable that the miners’ increase has been used in isolation to rally support
for the illegal work stoppage on the one side and to apportion blame on the other
side,’ Implats said.

It also welcomed a plea today by Julius Malema, the firebrand President of the ANC
Youth League, and ANC Deputy General Secretary, Thandi Modise, for workers to
return to work and bring the violence to a close. A similar request was made last
week by Cosatu General Secretary, Zwelinzima Vavi.

Four Impala employees were assaulted on Monday evening and early this morning,
with one employee severely injured, Implats said. “Implats deplores this violence and
intimidation and calls on the South African Police Service to continue its vigilance with
this criminal activity,’ it commented.

NOT CONVENTIONAL

Implats said the strike was “not conventional’ and that the illegal stoppage was “a
direct attack on NUM’s position as the majority employee representative, as well
as an attempt to destabilise the company.

“It is clear that there are criminal elements taking advantage of this sensitive and
volatile situation,’ it said.

Impala said earlier it would rehire 15,000 of the 17,200 who were dismissed several
weeks ago and who had reapplied for their jobs. These employees would be rehired
with previous benefits intact, as per an agreement last week with NUM and Cosatu.

Some 9,800 employees who had reapplied for their positions are involved with mining
activities such as cleaning, establishment, critical end development and making-safe
in anticipation of resumption, Implats said.

Third-party deliveries from platinum producers that have tolling agreements with
Impala Refining Services were being processed as normal, the company said.