Mining group Kumba Resources has served trade union Solidarity with notice that the group wishes to consult with its recognised trade unions on October 21, with a view to retrenching at least 400 of the group’s 9 960 workers.
The envisaged job cuts form part of Kumba’s programme to achieve sustained earnings, before interest and tax contribution, of R800-million.
Last week, the group said it is on course to achieve a sustainable minimum R800-million improvement in net operating profit by December 2005, the full impact of which is expected to be realised in the group’s 2006 financial year.
The minimum R800-million target was set using a forecasted exchange rate of R7 to the United States dollar, Kumba said.
“Solidarity finds it infuriating that, at the signing of an agreement on a seven-day work week between the trade unions and Kumba two weeks ago, the group assured Solidarity and the National Union of Mineworkers that there would not be any job losses,” Solidarity spokesperson Reint Dykema said.
“At the implementation of [the] Kumba business improvement programme in February 2004, Solidarity asked to be made part of the process.
“Kumba, however, proceeded with the process unilaterally … Solidarity would have proposed an alternative to retrenchments, the more so since Kumba is busy increasing its production and expanding its infrastructure, as is shown by the escalation in rail traffic between Sishen and Saldanha,” Dykema added.
During the past book year, Kumba invested R759-million in new production capacity.
“We find Kumba’s insensitive actions incomprehensible. The group’s turnover for the year was R8,45-billion, a 13% increase on the previous year. In the light of this, the company should be appointing more workers, rather than indulging in retrenchments,” Dykema said. — I-Net Bridge