Gold Fields set to cut jobs in restructure

One thousand five hundred and sixty mineworkers could be laid off at Gold Fields’ loss-making South Deep mine.

The mining company has invested approximately R32-billion since it acquired the mine in 2006, in an attempt to restore operations at the mine.

Gold Fields noted that rising operation and overhead costs, consistent failure to meet production targets, challenging geotechnical and ground conditions, and poor equipment reliability were some of the issues that the mining company is facing.

“It is envisaged that approximately 1 100 permanent employees could potentially be impacted by the proposed restructuring. In addition, approximately 460 contractors could also potentially be impacted,” Gold Fields said in a statement released on Tuesday.

South Deep currently employs 3 614 full-time employees and 1 940 contractors.

Gold Fields has completed two phases of its organisational restructuring plan. In the last quarter of 2017, the mining company reduced its management levels by 25%, and in first quarter of 2018, 261 employees voluntarily left the company.

The mining company has also revised its production targets — its production for the second quarter of 2018 was only marginally higher at 1 518kg than 1 485kg in the first quarter, but South Deep continues to face organisational and structural challenges.

“Overall labour productivity is significantly below industry average,” Gold Fields said.

“Given the significant impact of the restructuring from late 2017 and early 2018, we are unable to quantify the impact of the proposed large scale restructuring on production in 2019 and beyond,” Gold Fields added.

Gold Fields announcement follows that of Impala Platinum which earlier this month had said it would cut 13 000 jobs at its mines over the next two years to address losses at its Rustenburg mines.

READ MORE: Attitudes harden over Implats job loss threat

Gold Field has served section 189 notices — which detail dismissals based on operational requirements in the Labour Relations Act — on its two representative trade unions, the National Union of Mineworkers and UASA (formerly known as the United Association of South Africa).

According to the statement, Gold Fields said it had informed the Minister of Mineral Resources Gwede Mantashe of its plans.

Advertisting

Stranded commuters say Ramaphosa’s rail promises ring hollow

Cape Town’s largest passenger rail line has been closed for months, hitting people’s pockets and adding to road traffic congestion

EFF ‘circus’ becomes contagion as MPs heckle Malema

ANC MPs test the EFF’s disruptive tactics on the leader of the Red Berets in Sona reply

Ramaphosa ‘neutral’ in Mkhwebane, Parliament impeachment row

However, the president says even if he has a conflict of interest, another Cabinet member could suspend the public protector

Strike-off case pulls in judge

Judge Mushtak Parker is implicated in an application to strike off his former partners. He is also involved in the fight between the Western Cape high court’s judge president and his deputy
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it