Union, ANC outcry over Sibanye retrenchment plan

SIBANYE Gold’s plan to lay off up to 3,100 workers at its Beatrix West mine has sparked an outcry from the ruling African National Congress (ANC).

The Beatrix West shaft is part of the Beatrix mine in the Free State, which, alongside the Kloof Driefontein mines in Carletonville, were unbundled into Sibanye Gold after the world’s fourthbiggest gold miner, Gold Fields, spun off its South African mines, retaining only the South Deep gold operation.

On Monday, Sibanye Gold announced it was in consultation, in line with section 189a of the Labour Relations Act, with labour unions and the Department of Mineral Resources regarding the fate of the operation, as it expects an underground fire at the shaft — which has been raging since February 19 — to continue.

Sibanye has opted for the 60day consultative process because of the underground fire. The miner said it was losing 61kg, or 1,961oz, a month as a result, which translated into a loss of R28m in revenue a month, based on company estimates.

The exact cause of the fire is not yet known but the damage it has caused is estimated to have disrupted about 38% of the production area at Beatrix.

A company insider said final decisions regarding the dismissals had not been made and the company had not yet commenced the 60-day consultative process with the stakeholders.

Another concern was the shaft’s ability to recover the R2.6bn that was spent on its expansion programme,

ANC secretary-general Gwede Mantashe criticised Sibanye’s decision, saying “employees cannot be punished due to the result of the fire”. He said the move went against the commit- ments to the state’s National Development Plan (NDP) made by the business community.

“Unemployment is still a major issue in the country, which was identified in the NDP. What the company needs to say openly is whether or not it has plans to open new mining phases to ensure employment,” he said.

National Union of workers spokesman MineLesiba Seshoka accused Sibanye of “using underhand tactics, in an attempt to retrench its workers”.

He said that the decision by the company was not living up to the initial promise by Gold Fields when it announced the unbundling of the Kloof Driefontein and Beatrix mines — which was that no jobs would be lost because of the change in ownership.