HANNESBURG (miningweekly.com) – Trade union Solidarity said on Tuesday that, while the proposed retrenchment of 3 000 employees at Sibanye Gold’s Beatrix West mine was regrettable, it believed that “the mining company could not do much to avert the retrenchments.”

Sibanye Gold issued a Section 189 notice to Solidarity on April 2, indicating that, owing to operational requirements, it would be forced to retrench some 3 000 employees as a result of a fire that occurred at the mine’s Beatrix 4 shaft, in February, from which it was financially unable to recover.

The fire caused a monthly loss in income for the company of R28-million and a loss of about 61 kg of gold a month.

Solidarity spokesperson Moira-Marie Kloppers added in a statement that depressed economic conditions had resulted in the shaft experiencing a financial crisis for some time.

The union proposed that alternatives to retrenchment be considered, such as the reduction of bonuses or the review of salaries, in addition to the possible downscaling of temporary and contract workers.

‘The mining industry in South Africa is going through tough times at the moment. As a trade union, we are well aware of the challenges facing the industry at the moment. We are, however, trying to limit the impact of the consequences,” she said.

However, should retrenchment be pursued, the trade union emphasised that it would still attempt to limit the effect of retrenchments on its members, and would meet with Sibanye management on April 24 to submit a proposed social plan to the employer.

The plan included proposals for taking “proactive steps” to avoid retrenchments; however, should retrenchments be found to be the only feasible alternative, retrenchment processes should be handled in terms of legal requirements and fair retrenchment procedures.

“Laws and regulations that must be complied with include Section 189 of the Labour Relations Act, the social plan as outlined by the Department of Labour, collective bargaining agreements with the relevant trade unions, company procedures and employee service agreements,” Kloppers said.

“Solidarity suggests that, should retrenchments be inevitable, employers should offer more favourable retrenchment packages, where the training needs of employees are investigated, and entrepreneurship and business skills are promoted,” she noted.

Importantly, the mine would be required to comply with the fixed payout period of retrenchment packages and offer support with regard to the payment of unemployment insurance and counselling services to employees.

Retrenched employees should also be given first option to apply for vacancies should any arise, the union proposed.