President Steyn gold mine near Welkom plans to retrench 1 500 workers by the end of July, the trade union Solidarity said on Wednesday.
Solidarity said the mine management highlighted the strengthening of the rand as the reason for the upcoming lay-offs.
”According to a notice issued by the company, retrenchments will take place in 60 days’ time,” said Solidarity spokesperson Reint Dykema.
”We are expecting to get several similar notices from other mines.”
The National Union of Mineworkers (NUM), which also received the notice, said it is in negotiations with the mine to avert the retrenchments.
”We have also agreed to engage in a process of planning the mine afresh and this has just started,” NUM regional organiser Moses Mohlaba said.
The process involvs planning new targets and studying geological figures for a new mine.
”The mine management has assembled a team of geologists who will look into how much area was available for more mining,” he said.
”We expect the team to hand in its report in two weeks’ time.”
Mohlaba said he could not tell if there will be more gold to mine, as it is up to the geologists to find.
”We will await their study and if it is not satisfactory the trade union will assemble its own team of geologists.”
Mohlaba said a geological study has never been done before in the Free State to save jobs.
”All we are trying to do is to come up with a more sustainable way of retaining jobs and create more employment,” he said.
”We will not sit down and watch the mine terminate jobs because we believe the company can achieve what it set out to achieve.”
Mohlaba said if the company proceeds with retrenchments the union will embark on a strike.
”In terms of the new amendments in the Labour Relations Act, we are allowed to go on strike if we do not agree with the mine’s proposal.” — Sapa