Trade union Solidarity on Monday launched its social plan for Stilfontein in the North West. The plan aims to support the community and workers through difficult times due to the closure of DRDGold mines in that area.
In a statement, the union explained that the plan includes counselling, financial advice, training, placements and community aid.
The union said the flip side of the plan will be managing the liquidation process to the benefit of the workers.
On March 22, the Supreme Court in Johannesburg placed mining group DRDGold’s North West operations under provisional liquidation.
This meant that activities at the Hartebeesfontein and Buffelsfontein mines near Stilfontein were halted, which suddenly left 6 513 workers without jobs.
With the liquidation of the North West operations, DRDGold walked away from its legal obligation to pay retrenchment packaged to its workers, according to Solidarity.
The union said that the extent of the liability is estimated at R130-million.
“DRDGold also turned its back on the pumping cost liability of the Hartebeesfontein mine. The mine has to be pumped dry, as it endangers the continued existence of the adjacent AngloGold Ashanti and Harmony mines.”
The union added that the pumping costs are estimated at R80-million a year.
“In terms of a court order, the pumping costs are currently shared by DRDGold, AngloGold Ashanti and Harmony. However, the Harmony group is not satisfied with this arrangement and is in the process of appealing against the court decision.
“AngloGold Ashanti indicated that it would through the courts see to it that DRDGold pays its share of the pumping costs.”
Solidarity said that if AngloGold Ashanti and Harmony were to close their mining operations because of the pumping costs, it would lead to further job losses for about 11 000 workers.
The union has endeavoured to appoint its own liquidator, but the effort was unsuccessful when the trade union lost an urgent application in the Pretoria Supreme Court.
This obliges the trade union to work in close collaboration with the three liquidators, Norman Klein, Sheila Mphahlele and Barend Peterson.
At the last meeting between organised labour and the liquidators, the trade unions were informed that a number of takeover offers have been received for DRDGold.
These offers still have to be evaluated and considered.
The union said the good news is that at least 3 600 out of 6 513 workers will retain their jobs.
Retrenchment packages will be paid out to the remaining 2 900 workers. However, the formula for determining these packages has not been finalised.
The only name of potential buyers that is currently known is Simmer and Jack Mines.
According to the union, the group is willing to provide jobs to 3 600 workers and 750 contractors.
Social plan
The union said funds are the core of its social plan. Solidarity would like to help the community to help itself by raising funds.
A fund-raising campaign has already been started on the community radio station Radio Overvaal. The Klerksdorp Record and Noordvaal community newspapers are already giving “wonderful” support to the process. The trade union will donate R1 from its Helping Hand Fund for every R1 collected by the community.
The trade union has indicated that it will initially match a maximum of R100 000 for every community rand. Companies in the community will also be encouraged to make contributions.
The union also said that the schooling of the children of affected workers should not be interrupted.
“We will appreciate it if schools can give temporary relief to parents who can’t afford the school fees. We understand that it’s not possible in all instances and therefore we decided to give some of the money from the emergency fund to schools in cases where it’s needed.”
Donations of clothing to Solidarity’s Helping Hand Fund will also be channelled to Stilfontein, and the union said it has decided to give R25 000 to schools for feeding programmes.
On medical assistance, Solidarity said it has negotiated special fees with doctors Leon Meyer and Leon Hürselman as well as with the Willmed hospital.
Solidarity will through its job replacement agency Netmark endeavour to get alternative jobs for those persons affected by the retrenchments. In collaboration with its financial services company Fin-Q, Solidarity will provide financial advice to employees, the statement added.
A counselling action has also been launched to support workers.
Solidarity also appealed to other trade unions to get involved in the support processes and support their members in this regard. — I-Net Bridge