Sibanye starts Section 189 support staff consultations
JOHANNESBURG (miningweekly.com) – Dual-listed Sibanye Gold on Thursday issued Section 189 notices to employees in the group’s support services functions, as part of a proposal to retrench up to 1 600 workers.
The gold miner warned on Tuesday, at the presentation of its interim results, that it would shed further jobs through “rightsizing” the organisation, as it continues the restructure that has enabled the group to bounce back from a subpar performance during the second half of 2012.
“The reorganisation of the group’s support services is necessary in order to align with the service requirements of the mining and metallurgical operating units and contribute to a sustainable production profile,” Sibanye said in a statement.
It added that merging regional, corporate and mine support services into a consolidated, centralised function would realise economies of scale that would improve efficiencies and reduce the cost of the services provided.
“Through this proposed restructuring, we see significant potential for increasing economically recoverable reserves by reducing overhead costs and improving operational efficiency. This will allow current production levels to be sustained well into the future,” CEO Neal Froneman commented.
The company said it was committed to a transparent process of consultation with organised labour and employees to explore all available options.
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