Amcu reads riot act to Amplats over plan to cut jobs

Amcu leader Joseph Mathunjwa said the union had issued a 48-hour strike notice but it would consider calling off the planned action if Amplats reversed a decision to cut 3‚300 jobs by the end of this week.

Large job cuts have loomed at the world's largest platinum miner since the beginning of the year when Amplats announced it was considering cutting 14‚000 jobs‚ closing unprofitable shafts and aligning operations with weaker commodity prices.

The restructuring plans were precipitated by an unprecedented financial loss last year.

In February Amplats reported a fall in headline earnings of 141% and a loss of R1.47bn for the year to December. These were largely attributable to a two-month unprotected strike last year.

Fierce resistance to job cuts

The miner's plan met with fierce resistance from the government and trade unions. Mineral Resources Minister Susan Shabangu threatened to revoke its mining licences‚ while unions threatened strikes.

A process of facilitation under the Commission for Conciliation‚ Mediation and Arbitration resulted in 1‚500 staff accepting voluntary severance packages‚ while jobs would be found for 1‚600 people in the group.

Amplats spokesman Mpumi Sithole said that industrial action would result in further financial losses for the company. The job cuts were necessary for the survival of the business and its remaining 40‚000 jobs.

Management would engage with stakeholders.

Mathunjwa accused management of acting in bad faith‚ by continually moving targets and having a lack of transparency with workers.

The NUM's spokesman Lesiba Seshoka said that during talks on restructuring retrenchments were never on the table. It was regrettable that Amcu had not sought joint action with other unions as resistance would be stronger together.

Little room to negotiate

"NUM will seek further engagement with management‚ but by pressing ahead with retrenchments Amplats has given unions very little room for further negotiation‚" Seshoka said.

He said a strike was definitely on the cards.

Strikes also loom in the gold sector‚ where Amcu has declined a wage offer of up to 8% from producers‚ although this has been accepted by three other unions - the NUM‚ Solidarity‚ and the United Association of South Africa.

Mathunjwa said a meeting between Amcu leaders‚ Deputy President Kgalema Motlanthe and Shabangu was expected to take place this week. "While they (Motlanthe and Shabangu) can't negotiate for us they need to know where we are coming from before there is any strike," he said.

Meanwhile‚ 70‚000 National Union of Metalworkers of South Africa members have been on strike at petrol stations and vehicle component manufacturing factories.

Retail Motor Industry executive director Jakkie Olivier dismissed reports of a substantial gap between workers and employers in talks. "We are much closer (to a settlement) than people believe‚" he said.