/ 19 April 2005

Minister to discuss jobs crisis at SA mines

The jobs crisis in South Africa’s mining industry will be discussed on Tuesday when Minerals and Energy Minister Phumzile Mlambo-Ngcuka meets the National Union of Mineworkers (NUM) and various institutions.

Her department said on Monday the minister will also discuss ways of ensuring that the supply of electricity to various communities and industries was efficiently provided, without interruptions.

Talks will touch on the restructuring of the electricity industry as a whole.

The NUM lashed out at electricity supplier Eskom and Ingwe Collieries over possible retrenchments on Monday.

”Ingwe’s shock announcement of an intention to retrench comes at a time when coal mining is on a high, with a contribution of about $234-million into BHP Billiton profits,” said NUM spokesperson Paris Mashego.

”It’s of greater concern that Eskom, a state institution, intends retrenching when government pronouncements and actions are towards job retention and job creation.”

The NUM called on the owners of Ingwe, BHP Billiton, to sell the company to South Africans.

Ingwe spokesperson Michael Campbell said the intended restructuring was expected to improve key areas such as safety and productivity.

The restructuring was expected to place Ingwe in the top category of coal mining companies globally, which would enable it to attract ”significant new investment”.

He did not want to elaborate on the number of retrenchments expected, saying it would jeopardise the consultation process. NUM has, however, put it at about 1 000.

On the possible Eskom retrenchments, Mashego said the power utility argued that the workers involved did not ”fit into their plans”.

”Eskom has declared the retrenchments of 200 workers, who are employed at Camden, Komati and Grootvlei power stations.”

However Eskom spokesperson Fani Zulu said activities at the three power stations mentioned had been ceased some time ago.

At the time Eskom had to make ”alternative arrangements” for the more than 3 000 people employed at these places.

Of those, 200 remained at the power stations. These stations would be returned to service soon.

”Eskom has indeed argued that the remaining 200 workers do not fit the skills profile required to run these stations.”

NUM also announced that it is considering seeking an interdict against Harmony to stop planned retrenchments at its Free State operations.

”Harmony’s arrogant stance of not wanting to engage with the union and merely issue [an] intention to retrench workers has prompted us to seek an interdict, with the Labour Court, to stop their intended action,” said Gwede Mantashe, NUM’s general secretary.

Harmony spokesperson Brenton Saunders said the company has received no official notification of a dispute or an intention to seek an interdict.

Should the interdict not succeed, NUM said it will consider other means to challenge the retrenchments.

Earlier on Monday, Harmony said it had reached an understanding with Solidarity and the United Association of SA on retrenchments.

In terms of the understanding, the effective date of retrenchments for Solidarity and UASA members would be extended to Thursday. Retrenchments were supposed to take place last Friday.

This did not apply to NUM members, Saunders said.

”We will be serving retrenchment notices tonight and tomorrow morning,” he said on Monday night.

Earlier this month, Harmony announced it planned to retrench about 4 900 workers in a restructuring process. Restructuring would also lead to the shut-down of operations of three loss-making mine shafts in the Free State.

Meanwhile Solidarity, in a last-ditch effort to curb job losses at Harmony’s mines, invited the labour minister to visit the mines.

”We [the union] would like to show Minister Membathisi Mdladlana the reality of the retrenchment crisis unfolding at gold mines in the Free State,” union spokesperson Dirk Hermann said on Monday.

”Solidarity has no further legal recourse on behalf of its members since Harmony had followed the correct retrenchment procedures.”

According to the union the mining giant had already laid off 8 000 mine workers in 2004. – Sapa