[miningmx.com] – ANGLO American Platinum (Amplats) may cut 5,000
jobs following government and union intervention, said Reuters citing two people it
said were familiar with the situation.
Amplats announced last year that it intended to cut about 400,000 ounces a year of
productive capacity, a development that would have affected up to 14,000 jobs at the
company’s Rustenburg mines.
The steps, deemed necessary owing to margin pressure on some shafts, provoked a
political backlash from the South African government. Susan Shabangu, mines
minister, slammed Amplats for not consulting it properly.
As a result, Amplats said it would engage the departments of minerals resources and
labour, as well as unions over 60 days in which it would explore the restructuring
process.
The consultation period has been extended twice, a development which Reuters said
could mean Amplats will heavily amend its plans. “The government is being incredibly
tough,” said one of the sources, after almost four months of talks.
Another source said the proposed job losses could be cut by half or more while the
original target of 14,000 jobs could eventually be achieved through attrition, especially
as there was high turnover in the platinum labour market.
“The goal is not achievable at the flick of a switch. You have to look at ways of getting
there in as short a time as possible,” the source said.
Amplats said it would announce its restructuring plans on May 6.
