Trade union Solidarity said in a statement yesterday it was concerned about the fate of almost 3 000 Sibanye-Stillwater mineworkers after the mining company announced lay-offs were on the horizon.
The union said it would actively participate in the consultation process with the aim of preventing lay-offs, or at least, limiting lay-offs.
The mining firm on Friday said it intended to lay off a total of 2 389 workers and 581 contract workers from the Kloof 4 shaft at Carletonville.
Sibanye-Stillwater said this was pursuant to “ongoing losses over an extended period and operational constraints” at the Kloof 4 shaft. The initiation of the S189 consultations comes against the backdrop of failed attempts by the company to “address productivity issues and other operational constraints” at the operation. Losses and a decrease in mineral reserves have forced it to take the step of issuing lay-off notices.
However, Solidarity deputy general secretary Riaan Visser said Sibanye's excellent half-yearly results, in effect, contradicted the necessity for large-scale lay-offs.
“Amid already challenging circumstances, these employees are faced with the uncertainty of whether they will still have a job by the end of 2023.
“However, in its recent half-yearly results, the company boasted about the turnaround in its gold production, which showed a 117% improvement over the first half of the year. It was said that production in this division met expectations and even yielded good profits,” Visser said.
Solidarity said in light of the financial results of Sibanye's gold division and the existing alternative of cross-subsidising gold and smaller profits for the gold giant, the rationale should be questioned.
Visser said workers were already experiencing huge financial pressures that ultimately would affect the wider community.
“Research has shown that for every mineworker who is laid off, 10 dependents are affected. This highlights how serious the consequences can be, and it provides enough reason why Solidarity does not treat any lay-offs in the industry lightly,” Visser said.
The Section 189 process will be facilitated by the Commission for Conciliation, Mediation and Arbitration (CCMA), and a date for the first round of the consultation process has yet to be confirmed.
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