A TROUBLED 24 months for Wesizwe Platinum intensified on Thursday when employees, completing their night shift, staged an underground sit-in.
The company, which is 45% controlled by China Africa Jinchuan, has been hit by several protests by employees since 2022, the last being a three week stoppage between July and August.
“Demands have been made by the participating employees,” the company said on today in an announcement to the JSE. “Shareholders are advised that employees embarked on an illegal sit-in at the Bakubung Platinum Mine. The sit-in commenced on Wednesday, 6 December 2023 at or about 8h26am when employees chose not to return to surface at the end of their shift,” it said.
“Management together with local union representatives are engaging with the purpose of returning all employees to surface,” it added.
In November, Wesizwe announced a restructuring of its “bloated” 420,000 ounce a year capacity Bakubung in terms of which up to 571 employees of its total 761 staff complement could be affected.
A switch in mining method at the Bakubung as well as the effects of two strikes in each of 2022 and 2023, and a third unprotected, five-week stoppage had compounded the mine’s problems. Staff from all levels and throughout the business would be affected, it said.
In its restructuring announcement, Wesizwe said there “simply does not appear to be any alternatives” as the mine was lossmaking, and owing to a need to “ensure that Bakubung is placed on a path of profitability and growth”.
“As things stand Bakubung has already stopped overtime and weekend work, did not renew contracts of mining contract services and fixed-term contracts of non-critical staff and placed a moratorium on recruitment of non-core and critical staff with the aim of reducing the bloated structure that causes inefficiencies,” it said.
There is huge stress in South Africa’s platinum group metals sector.
Bloomberg News said on November 24 that Anglo American was considering cutting staff at Anglo American Platinum owing to poor PGM prices.
On October 25, Sibanye-Stillwater announced restructuring plans affecting 4,095 full time employees and contractors at its PGM mines. Four shafts are affected: at Kroondal (Simunye shaft), two at Marikana (Rowland and 4 Belt shafts) and one shaft at its Rustenburg section (Siphumelele).
In November, Impala Platinum said it was offering voluntary job cuts to workers at some of its shafts in South Africa.
“We are obviously doing everything to reduce costs,” Johan Theron, spokesperson for Implats told Reuters. “Labour is a big cost component so you always start with labour by offering voluntary separation packages,” he said. The PGM miner started with head office cuts in October, and is now extending them to its Rustenburg Lease shafts.
