Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – The National Union of Mineworkers (NUM) on Friday confirmed that it had received a Section 189 notice from gold producer AngloGold Ashanti that it was retrenching 849 workers at its operations in South Africa.
In a statement released to Mining Weekly Online on Thursday, AngloGold Ashanti spokesperson Chris Nthite noted that the business was marred by maturing operations, a declining production profile, cost escalations and frequent regulatory disruptions, which hampered its ability to build and sustain volumes, but added that "job cuts will always be a last resort”.
NUM, in its statement said it was "extremely disappointed and perturbed" that the miner was likely to retrench "such a huge number" of workers at a time when South Africa's unemployment rate had crept ever-higher. The country's employment rate rose to 27.1% in third quarter of 2016.
The union said it would meet with AngloGold Ashanti on Monday to seek avoidance measures. "If no agreement is reached with the company, we will [turn to the] Commission for Conciliation, Mediation and Arbitration for facilitation," it stated.
"We call on AngloGold Ashanti to rethink its position to retrench. They must create opportunities for job creation rather than increasing profits at the expense of the poor mineworkers who earn poverty wages," it added.