ANC asks mining companies to reconsider job cuts

© Kovalenko Inna – za.fotolia.com

ANC general secretary Gwede Mantashe said the lekgotla noted the decline in the commodity price, but said this should not influence the decision to shed jobs.

"While we appreciate that the price of minerals is inherently cyclical, we also noted that the decline of the demand for steel in the Chinese market and the dumping of cheap steel in SA, is impacting negatively on our economy," he told reporters in Johannesburg.

"Companies must not take the decision of destroying jobs easily. Hold on and work until that price of commodities picks up."

He said it was "unpatriotic" to cut jobs every time the cycle went down.

South Africa was a mineral driven economy.

"It is concerning that their response has been the cutting of jobs; which instead of resolving the challenges is deepening the crisis," Mantashe said.

"Those companies that have already announced possible retrenchments are called upon to review their plans and avoid massive job losses, as such would lead us further into crisis."

Platinum mining company Lonmin stated in an Article 189 retrenchment notice on Friday that the company would soon commence with a restructuring process, which would involve about 4 500 employees.

Lonmin said the reasons for the retrenchment process were the weakened metal price and the consequent closure of its Hossy shaft. The company also planned to put four of its shafts under care and maintenance.

Last month, Anglo American Platinum said it planned to overhaul a number of its South African mines to make them more profitable in the face of depressed prices.

It said the move could lead to up to 420 job cuts, mostly managerial and supervisory positions, and did not include its Rustenburg and Union mines, which were earmarked for disposal.

Mantashe said there needed to be a relationship between the state and the private sector, especially when it came to creating employment in the country.

"If the private sector is not co-operating, then the state is not going to succeed.

"The private sector will only realise the dangers of high unemployment when it related to disruptions. [They] need to realise that we need to work together," he said.

Source: News24