The possible loss of 6 900 jobs at Gold Fields mining company will affect more than 50 000 additional South Africans, deepening the economic impact beyond the numerical cuts alone.
According to research by the mineworkers’ union, NUM, each miner supports an average of between six to 10 dependants. The proposed job cuts, a result of Eskom power restrictions on mining activity, will impact negatively on the lives of people dependant on mining for their income.
Gold Fields announced on Monday that to sustain a 10% reduction in energy consumption, set by Eskom, it would have to scale back operations on unproductive shafts at its Kloof Gold Mine and restructure operations at its South Deep Gold Mine. These measures will affect 6 900 employees of a total of 53 000.
But given the high levels of unemployment in South Africa there is no way these workers will be absorbed back into the economy, said Frans Baleni, general secretary of NUM. He said a loss in production at the mines will also affect contract workers, who are not directly deemed to be employed by the mines.
After the Gold Fields announcement trade union Solidarity reported that 569 contractors employed by Murray & Roberts Cementation would be laid off as a first cut.
Baleni said affected union members responded to the news with anger, frustration and fear.
”We will resist this,” he told the Mail & Guardian on Wednesday.
One Kloof Gold Mine worker, who wished to remain anonymous, said he has worked for Gold Fields for 11 years. His job at the mine has been the sole source of income for his wife, two young children, his mother and his younger brother, who is still at school.
”If I lost my job I do not know what my family would do; this would mean they would have no one to support them as I am the only person who provides support for the family,” he said.
If he is retrenched, he said, he will return to his home in the Eastern Cape, but does not know what he would do there.
”I have only ever worked here; maybe others have had other jobs before and might try to find new jobs, [but] this is all I have done so I would have nothing to fall back on,” he said.
Jackson Mafika, a NUM shop steward at Kloof Gold Mine, said workers are ”distraught” about potential job cuts. He said people living in the Simunye and Bekkersdaal locations close to Kloof will be adversely affected by problems at the mine. About 65% of the township residents benefit from the mine in some way, said Mafika, while local government services to the area are complemented by mine revenue.
The nearby town of Westonaria will feel the affect of layoffs at the mine, too, said Mafika. ”Businesses are dependent on the mine and the bulk of people will be affected in terms of customers and revenue.”
The Chamber of Mines said on Wednesday that in the case of deep level mining, in particular, a 10% reduction in electricity use could translate into a 20% drop in production and, as such, production losses have affected jobs.
”Mining plays a major role in the economy of this country. Given that many mineworkers have relatively large families, who often live in deep rural areas, the number of dependants affected would be high and many would be in areas where there are very few or no alternative employment opportunities,” said Jabu Maphalala, spokesperson for the Chamber of Mines.
”The impact of the 10% reduction in electricity usage on the economy is expected to be significant with regard to export revenue, balance of payments, currency valuation and contribution to the GDP.”
Maphalala said energy cuts affected the mining industry ”disproportionately”. He said the mines have already saved about 200MW in demand-side-management programmes in the past 18 months. This equates to a 4% saving on total demand and there is relatively limited scope for further energy efficiencies in the immediate short term.
”The industry is not convinced that other electricity users are making similar sacrifices as the mining industry and some large industrial customers,” he said.
The NUM will meet the presidency on Friday to discuss the problems.
