DMR lays into ‘mindless’ Implats as row erupts over 13,000 jobs cut

Gwede Mantashe, mines and energy minister, South Africa

THE South African government has accused Impala Platinum (Implats) of “… a mindless commitment” to a “pre-determined outcome” after the firm today unveiled plans to cut 30% of platinum production – a development that would affect up to 13,000 jobs.

“Today’s announcement by Implats that it will retrench thirteen thousand workers is a clear example of a company that is careless, and mindlessly committed to implement its pre-determined outcome; no matter how unworkable that might be,” said the Department of Mineral Resources (DMR) in a statement. “Their reckless actions add injury to insult.”

Nico Muller, CEO of Implats, said at a media briefing today that discussions with unions, primarily the Association of Mineworkers & Construction Union (AMCU), and the DMR had been held in good spirits, but acknowledged there was a bone of contention regarding the legal route through which the restructuring would be implemented.

The DMR wants Implats to adopt a restructuring notice through Section 54 of the Minerals & Petroleum Resources Development Act (MPRDA) which essentially takes a less direct approach to potential retrenchments by first seeking to ameliorate the situation, either in mediation or alternative job creation or other mechanisms.

Implats, however, has issued a restructuring notice through 189 of the Labour Relations Act (LRA) which gives affected employees a 60-day notice period, in which time consultations can take place. Thereafter, however, Implats can press ahead with the restructure as it had originally planned.

Said the DMR: “The Department of Mineral Resources was still at the beginning of an engagement with Implats, wherein we encouraged them to consider different options of saving jobs and keeping their operations working.

“In this regard, we proposed – to which Implats management agreed, that they should engage on the basis of a Section 52 of the MPRDA. The team intended to undertake this process with the company is yet to be announced, and Implats has run off to announce retrenchments,” it said.

“Further, Implats’ actions are a display of arrogance, hence they can go against the grain at the time when – even – the President of the Republic is calling on all of us to put shoulder to the wheel in turning around our country’s economic fortunes.

“The ministry, once more, urges Implats to reconsider its actions and return to the process we all agreed upon. Now is the time to work collectively and make our country prosper, and desist from behavior that is careless and without foresight,” it said.

The dispute demonstrates the pressures on either side of the government/industry divide with Implats saying today that it anticipated further cash burn at its Rustenburg shafts which is the focus of the planned restructuring. For its part, the South African government is under mounting pressure to retain jobs.