LONMIN’s job cuts have been less severe than it told the market last year, earning a rare note of praise from the Association of Mineworkers and Construction Union (Amcu), which declared itself "delighted" with the low number of forced retrenchments.
Lonmin, the world’s third-largest platinum miner, has ended the Section 189 process to reduce its workforce, removing 5,183 jobs since beginning the process in July last year when CEO Ben Magara announced a potential 6,000 job cuts and sweeping changes to the business to cope with lower metal prices and high costs.
Talks between management and Amcu ended this week and the union said it was "delighted to announce that of the 6,000 employees who were at risk of being retrenched, we were able to reduce the figure to 87."
The 87 employees Amcu said would be retrenched had been reduced to 75, and these employees would leave the company on Friday, Lonmin said, adding that 5,108 people had left the company by accepting voluntary severance packages, or early retirement, rather than be retrenched.
On top of the total 5,183 staff reduction, a further 1,297 employees had been "reskilled" and moved to other mines within the company, Lonmin said.
Referring to the overall scale of the job reductions, Amcu said: "The implications of losing so many jobs is devastating and will have a dire impact on the economy.
"Although we pride ourselves on the amount of jobs we have saved, we would have been more content knowing that no jobs were lost instead."
SA’s mining sector had cut 47,000 jobs between 2012 and early last year, as the industry grappled with soaring costs and low commodity prices, Roger Baxter, CEO of the Chamber of Mines, said last month.
The National Union of Mineworkers general secretary David Sipunzi said this week the union estimated 36,773 mining jobs were at risk in the next three months, but that these could be mitigated during retrenchment consultation processes.
Mineral Resources Minister Mosebenzi Zwane told a parliamentary oversight committee on Wednesday that a declaration signed by his department, industry, and labour six months ago had saved 16,000 jobs in the sector.
Of the 5,108 people leaving Lonmin through voluntary processes, 2,979 were its own employees and a further 2,129 were contractors.
Lonmin now employs 32,970 people after the restructuring.
A man rides his bicycle past the Lonmin mine outside Rustenburg, northwest of Johannesburg. Picture: REUTERS
LONMIN’s job cuts have been less severe than it told the market last year, earning a rare note of praise from the Association of Mineworkers and Construction Union (Amcu), which declared itself "delighted" with the low number of forced retrenchments.
Lonmin, the world’s third-largest platinum miner, has ended the Section 189 process to reduce its workforce, removing 5,183 jobs since beginning the process in July last year when CEO Ben Magara announced a potential 6,000 job cuts and sweeping changes to the business to cope with lower metal prices and high costs.
Talks between management and Amcu ended this week and the union said it was "delighted to announce that of the 6,000 employees who were at risk of being retrenched, we were able to reduce the figure to 87."
The 87 employees Amcu said would be retrenched had been reduced to 75, and these employees would leave the company on Friday, Lonmin said, adding that 5,108 people had left the company by accepting voluntary severance packages, or early retirement, rather than be retrenched.
On top of the total 5,183 staff reduction, a further 1,297 employees had been "reskilled" and moved to other mines within the company, Lonmin said.
Referring to the overall scale of the job reductions, Amcu said: "The implications of losing so many jobs is devastating and will have a dire impact on the economy.
"Although we pride ourselves on the amount of jobs we have saved, we would have been more content knowing that no jobs were lost instead."
SA’s mining sector had cut 47,000 jobs between 2012 and early last year, as the industry grappled with soaring costs and low commodity prices, Roger Baxter, CEO of the Chamber of Mines, said last month.
The National Union of Mineworkers general secretary David Sipunzi said this week the union estimated 36,773 mining jobs were at risk in the next three months, but that these could be mitigated during retrenchment consultation processes.
Mineral Resources Minister Mosebenzi Zwane told a parliamentary oversight committee on Wednesday that a declaration signed by his department, industry, and labour six months ago had saved 16,000 jobs in the sector.
Of the 5,108 people leaving Lonmin through voluntary processes, 2,979 were its own employees and a further 2,129 were contractors.
Lonmin now employs 32,970 people after the restructuring.
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