Portfolio Committee on Mineral and Petroleum Resources chairperson Mikateko Mahlaule has expressed concern about reports of mass retrenchments at mining companies in Mpumalanga.
The committee is conducting oversight visits to mining companies in the Nkangala region, including the Arnot coal mine in Middelburg, and engaging with labour unions and community members to discuss various issues relating to the sector, including operations, compliance, challenges and adherence to social and labour plans.
Trade unions the National Miners’ Union, the National Union of Metalworkers of South Africa, Solidarity and the Association of Mineworkers and Construction Union (AMCU) reportedly told the portfolio committee that mining companies in the province were retrenching permanent employees and pushing them to be employed through contractors.
The unions expressed concern that this new business model was creating job insecurity and worsening South Africa’s unemployment problem, as not all retrenched workers were employed by contractors.
State-owned company African Exploration Mining and Finance Corporation told the committee that its reason for retrenching was that it was not making any profits and had a bloated structure. The CEO said it needed a leaner structure to grow the business and that the retrenchment of 149 workers was unavoidable.
Another mining company Seriti Resources denied any mass retrenchments and said it had not broken any laws.
Mine management members said they had only retrenched three employees during the last retrenchment period in November last year, and that there was no requirement for consultation with organised labour, as the affected number was less than 500.
According to the portfolio committee, AMCU has taken this matter to court and Seriti has filed responding papers.
Mahlaule sais the committee was concerned about the reported retrenchments and that laying off workers must be avoided at all costs, where possible.
