Mineral Resources Minister Mosebenzi Zwane
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – With thousands of mining jobs on the line in South Africa, potential job losses in a pressurised mining sector had become a critical topic at Mineral Resources Minister Mosebenzi Zwane’s first real engagement with the public on Friday.
Zwane, appointed Minister late last year, had the difficult task of mitigating the impact of an expected “hectic” year, amid ever-increasing Section 189’s, a lack of real transformation achievements and a contested Mining Charter review.
More than ever, mining companies, in an attempt to cut costs and ride out challenging economic storms, have begun issuing Section 189 notices in terms of the Labour Relations Act to retrench workers, he said, addressing delegates at The New Age Business Briefing session, in Sandton.
The industry was on the verge of cutting some 32 000-plus jobs, while companies were being accused of not undertaking sufficient consultation and just “ticking the boxes”.
However, continued focus and direct engagement with key stakeholders would limit – and cushion the impact of – job losses, much like what was done by the Department of Mineral Resources to “save” Glencore’s embattled Optimum Coal and 3 000 jobs last year.
Optimum Coal went into business rescue and was subsequently sold off to local company Tegeta Resources in a controversial multibillion-rand deal that sparked much speculation about the Gupta family’s link to the ministry, controversy that deepened amidst rumours and allegations that Eskom had abandoned a 40-year coal supply relationship to source stock from Optimum.
Zwane, who again dismissed all the allegations on Friday, believed the format in which the deal was done could save countless more jobs, and he called on mining right holders not to abandon or “sterilise” stranded or lossmaking assets, but rather sell them to economically empowered local companies to breathe new life into the operations.
Zwane told delegates at the business briefing that his engagements would continue extensively as part of an industrywide agreement reached in August 2015 to avoid job losses.
In August last year, the mining industry, government, labour and business committed to save jobs and limit the impact of jobs losses, which had led to the signing of a leaders’ declaration to adhere to a ten-point intervention plan.
The declaration required that stakeholders delay the implementation of retrenchments, allowing for consultation for a month after the 60-day period of Section 189 notices; make all efforts to improve productivity and manage costs before reducing jobs; and implement accelerated rehabilitation programmes to create potential alternative jobs for the affected mineworkers.
Other interventions included the sale of distressed and other mining assets, as opposed to idling it and a commitment to explore every other avenue to avoid job losses, such as a moratorium on the filling of current vacancies, a training lay-off scheme and extended leave or early retirement, besides others.
Further, the signatories agreed to soften the impact of job losses through support mechanisms, including assistance with Unemployment Insurance Fund applications, counselling, job placements and reskilling, while developing mechanisms to strengthen the industry’s resilience in the face of the cyclical nature of commodity prices and demand.
In addition to job loss mitigation, transformation and the Mining Charter ambitions were at the top of Zwane’s agenda.
The Minister on Friday said that the department would withdraw from all court action regarding the disputes around the Mining Charter amendments, preferring to settle amicably out of court.
“This does not mean we are detracting from our black economic-empowerment ambitions [in the mining sector],” he assured.
While the charter remained under review, with Zwane hopeful of its finalisation by April, one thing was certain – the department would strictly enforce the “use-it-or-lose-it” clause.