South Africa 2.8.2018 03:44 pm

Govt hostility, instability ‘contribute to Implats job losses’

Solidarity says given the regulatory environment, mining houses are no longer prepared to carry the ‘pain of financial losses’.

Trade union Solidarity has criticised Impala platinum’s announcement to cut 13 000 jobs to meet the challenge of declining global demand.

This morning, the country’s second-largest platinum producer announced it would cut its workforce by 13 000 employees over the next two years as part of the implementation of its restructuring plan to meet the challenge of declining global demand.

According to a statement, Solidarity deputy general secretary for the mining industry, Connie Prinsloo, is, however, of the opinion that the retrenchments at Impala are part and parcel of the new normal where, given the regulatory environment, mining houses are no longer prepared to carry the “pain of financial losses” while waiting for market conditions to improve.

“In addition to the decline in economic growth, government’s hostility towards the mining industry combined with political and economic instability have given rise to the fact that mining houses are addressing their risks immediately, using retrenchments as a short-term solution,” Prinsloo said.

Solidarity said it sympathised with every employee and their families affected by the planned retrenchment process.

“This is a battle between the mining houses, government and the global economy, and unfortunately, employees are often caught in the crossfire. They are now hardest hit by the consequences of the war between those three parties,” Prinsloo concluded.

African News Agency (ANA)

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