/ 27 November 2010

Unions seek ‘true reason’ for Exxaro retrenchments

Diversified resources group Exxaro’s planned retrenchment of 300 workers would be the price of paying the company’s black economic empowerment shareholders a bigger dividend, the National Union of Mineworkers said on Friday.

NUM spokesperson Khaya Blaai said: “They want to pay BEE dividends at the expense of the workers. It’s very ironic, but there are problems with this company.”

Blaai’s comments follow an announcement by NUM and Solidarity that they were declaring a dispute with the company.

Exxaro announced at the beginning of the month that it “intends to restructure parts of the group to improve productivity, reduce cost of services and operations, and streamline its organisational structures”.

The company informed the unions that it planned to retrench employees at Exxaro Coal Mpumalanga, Exxaro Coal, Exxaro Reductants, Exxaro Sands, Exxaro TSA Sands, Ferroalloys and Exxaro Resources.

‘Jumped the gun’
A joint statement released by the two unions on Thursday claimed the company had failed to follow the correct procedures in dealing with retrenchments.

The unions have complained the company first told the media about the retrenchments before speaking to the workers.

“You cannot take a number and give it to the media. They should have spoken to the employees first,” said Solidarity spokesperson Louis Pretorius.

He said the company “had jumped the gun” and “swamped” the unions with information over its restructuring process and then expected them to rubber stamp the decision on retrenchments.

“Exxaro’s operating profit increased by 43%, so what rationale can you give [for the retrenchments]?” he asked. “I would like to hear what is the true reason. The main focus of the retrenchment consultation process is to minimise the effects, but they have already decided on the numbers.”

Blaai said he hoped the unions would be able to meet with company representatives in Pretoria and resolve the dispute, but if that failed the matter would be taken to the Commission for Conciliation, Mediation and Arbitration.

‘Growth aspirations’
Earlier this month Exxaro chief executive officer Sipho Nkosi said: “We are doing everything possible to limit the impact on our employees and the consultation process will examine all options.

“However, the future sustainability of the group remains a pressing need in the context of the demanding business environment in which we operate and we must ensure we have a streamlined and competitive current business to meet our growth aspirations.”

In August the company announced that it had posted a 68% rise in first-half headline earnings per share and that Group revenue increased 10% to R7,9-billion for the six months ended June 30 when compared with the same period in 2009.

Net operating profit increased by R410-million to R1,4-billion. – Sapa