Sibanye ‘lying’ about need for layoffs – Amcu’s Mathunjwa

Association of Mineworkers and Construction Union (Amcu) president Jacob Mathunjwa yesterday threw down the gauntlet over Sibanye-Stillwater’s plan to retrench 5 270 mine workers at its newly-acquired Lonmin operations in Marikana.

Mathunjwa disputed the world’s top platinum producer’s claim it was due to “ongoing financial losses”.

He described the company’s explanation for the planned retrenchments as “less than factual” because Lonmin – now owned by Sibanye-Stillwater – had made billions in net profit year-on-year from 2017 to 2018.

Sibanye-Stillwater said the move was “pursuant to ongoing financial losses experienced at the operations, with certain shafts having reached the end of their economic reserve lives”.

“The restructuring will result in the rationalisation of overheads, realisation of other synergies and efficiencies required to restore profitability, ensuring the sustainability of the remaining shafts at the Marikana operations.”

In line with the provisions of section 189 of the Labour Relations Act (LRA), Sibanye-Stillwater last week served stakeholders, including Amcu – the biggest union on the Rustenburg platinum belt – with a notice to enter into consultation over the pending retrenchments.

Mathunjwa added: “Over the past days, Sibanye-Stillwater has spoken to the media, complaining of financial losses made at Lonmin. But these claims are less than factual.

“In fact, according to Lonmin’s 2018 annual report, Lonmin made a net profit of R68 billion year-on-year from 2017 to 2018.

“During the first six months of 2019, the Lonmin operations generated an unaudited $70 million, proving that Lonmin was indeed profitable when Sibanye-Stillwater acquired it.

“Amcu opposed the so-called merger process from the start.

“The main focus of our opposition was exactly this – the mass retrenchment of workers.”

Mathunjwa said what the union found “more compelling” was that “Lonmin’s headcount had already been reduced by 21% since 2014, resulting in massive savings on expenses”.

“These job cuts have nothing to do with financial losses. It is a fact that Sibanye-Stillwater’s main reason for acquiring Lonmin was to get a processing plant.

“Lonmin has a fully integrated platinum group metals processing complex, including smelting, base and precious metal refining facilities. This gives it mine-to-market capability, enabling Sibanye-Stillwater to mine ore at its Rustenburg Platinum Mines and Kroondal operations, then process at Lonmin before going to market.”

He said Amcu had a fresh mandate to campaign for the amendment of section 189 of the Labour Relations Act.

“It makes it too easy for employers to butcher the livelihoods of workers for the sake of hyper profits. We demand that the Act includes other socio-economic requirements, especially for multinational mines and corporates.”

Amcu has faith in CCMA

Despite talking tough and not ruling out strikes to back the demand for a R1,500 wage increase per month in the platinum sector, Association of Mineworkers and Construction Union (Amcu) president Joseph Mathunjwa is confident of reaching a deal at the Commission for Conciliation, Mediation and Arbitration (CCMA) after a deadlock with mining bosses.

Mathunjwa said the union had exhausted the internal dispute resolution mechanisms at all the companies, except Impala.

“We have referred mutual interest disputes to the CCMA and we are positive that the commission will facilitate a resolution.

“Amcu remains positive that the mining bosses will pay their workers a living wage and decent benefits.

“We will spare no resources in fighting unnecessary job cuts and finding alternative solutions to workers and their families’ losing their livelihoods,” said Mathunjwa.

He added: “Our battle cry of the early years was for a living wage of R12,500 per month to be paid to the lowest earning worker.

“At this year’s platinum collective bargaining conference, we agreed to adjust this figure to a new baseline of R17,000 per month, due to inflation.

“We believe that R17,000 per month is a realistic and attainable target for a living wage for workers in our country.

“At the first rounds of mass meetings with our members, we were given the mandate to look at an increase of R1,500 per month, for every year of a three-year wage agreement.

“We also agreed to include broader issues related to conditions of service, such as health and safety.”

The employers involved in negotiations include Impala Platinum Holdings, Anglo American Platinum and Sibanye-Stillwater.

While “good progress” was made in talks with Anglo and Impala, “who have both crossed the R1,000 mark, Sibanye-Stillwater remained a stumbling block”.

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