/ 19 April 2005

Kumba limits retrenchments, Harmony goes ahead

Mining group Kumba Resources has agreed to limit its retrenchments to 100 people from the 400 people that it previously planned to retrench, a Solidarity spokesperson said on Tuesday.

In addition, Kumba has undertaken not to retrench any workers before September this year, he added.

Kumba had previously issued Section 189 restructuring notices to trade unions and indicated that it planned to retrench 400 workers.

Solidarity has asked Kumba for a two-year moratorium on retrenchments and Kumba has yet to agree to this, the Solidarity spokesperson said.

Kumba’s move to retrench workers forms part of its Kumba business improvement project, which aims to increase the group’s profits by upping revenue and cutting costs by R800-million.

The project was launched in February last year. Kumba employed 9 325 people at the end of its 2004 financial year.

Kumba spokesperson Trevor Arran wasn’t able for comment.

Harmony starts retrenchments

Meanwhile, world number six gold-miner Harmony Gold has started the process of retrenching National Union of Mineworkers (NUM) members at five of its operations in the Free State, Harmony spokesperson Brenton Saunders said on Tuesday.

So far, more than 600 NUM members have been issued with retrenchment notices, he added.

On March 14 and 15, Harmony issued Section 189 notices of restructuring to unions and staff associations at five operations.

The Welkom 1, which employs 526 people, St Helena (817 people), Nyala (1 003 people), Masimong (669 people) and the Bambanani (1 899 workers) gold mines were issued with notices.

The notices of restructuring affect 4 914 miners.

The NUM represents about 78% of the affected 4 914 miners, Saunders said.

Harmony has put the cost of the restructuring and retrenchments at about R150-million.

The group will start to issue retrenchment notices to Solidarity and the United Association of South Africa (Uasa) members on Thursday. — I-Net Bridge