Shiva Uranium employees ready to launch legal action to recover salaries

EMPLOYEES at Shiva Uranium, a mine in South Africa’s North West province, were considering legal action after the company had failed to pay salaries since July as the responsibility for employees falling to business rescue practitioners.

Shiva was one of nine companies that was owned by the Gupta family, the principal members of which have since fled the country amid allegations of corrupt relationships with the South African government, including former president Jacob Zuma.

BusinessLive cited former Shiva worker Tumi Matosela as saying that: “There are big creditors here, like the IDC [Industrial Development Corporation]. Why are they not doing anything to help the people get their salaries?”

The IDC’s divisional executive for corporate affairs, Zama Luthuli, told BusinessLive that the Business Rescue Practitioners are in charge of the operation of the mine and are, therefore, responsible for the payment of employee salaries.

As a result, Matosela asked that employees submit their names so a legal suit can be launched. One fear is that mama-zamas [illegal miners] will move into the premises and strip the mine of machinery and other items that could be sold.

“Starting from July, people have not been paid, until today,” Matosela was quoted by BusinessLive as saying. “Some people’s houses have been taken away by the bank, their cars, their kids can’t afford to go to school anymore because of the transport cost.”