Ordinary workers’ interests matter too
When Mineral Resources Minister Gwede Mantashe criticised Impala Platinum (Implats), Business Day said in an editorial that he lacked insight and empathy for struggling companies (Gwede Mantashe’s lack of insight, August 3). The minister has committed to relationship building as a means to reestablish trust and enable regular communication between the department and the industry. Two significant meetings, among others, bear testimony to this.
In the meeting of July 16 in the offices of Implats, challenges facing the four shafts in distress and how to respond to them were considered.
It was agreed that the company would embark on a process in terms of section 52 of the Mineral and Petroleum Resources Development Act with the aim of exploring all alternatives to save jobs, consider how the shafts could be kept in operation, and look at company restructuring.
The August 1 meeting, from which Implats was conspicuously absent, was held in the offices of the Minerals Council, with the CEOs of companies across the sectors, including junior miners. It discussed the industry’s contribution to the president’s economic stimulus package and creating employment. The CEOs submitted to the minister not only what they could possibly do, but also what the department and government broadly, could do to unlock possibilities. They highlighted the operational challenges they face in the present economic climate. The minister agreed to meet with sector forums of CEOs, starting with the most distressed sectors.
Against this background, on August 2, Implats announced the loss of 13,000 jobs. First, the action disregarded the first meeting and the outcome thereof. Second, it demonstrates a company that thinks it can run rough-shod over the government. Third, it reflects an intolerable arrogance from a company that had opportunities, at the least, through a section 52 process and at the meeting of CEOs, to make presentations.
Curiously, at the time that the editorial accused the minister of lacking insight and empathy, Implats sent an official communique to the ministry, and to labour, seeking to institute section 52.
The editorial equated shedding jobs, even in a difficult economy as ours, to saving the company. This subscribes to the notion of workers being of no value, ignoring that they convert investment into value. It failed to critique the industry’s tendency to invest in irreversible and unnecessary infrastructure expenditure during boom times, only to sacrifice workers in hard times. This shows a lack of insight by an industry that is cyclical in nature.
Unemployment, poverty and inequality are three vexing questions facing our country. Dismissing them as an election ruse is a folly of privilege; an illusion that when disaster strikes proponents will be spared. Economic growth, job creation and employment are priorities in the election manifesto of the governing party, to which the minister accounts. Logically, given that it received the mandate to govern on that basis, it must be concerned. Hence the president’s call on all South Africans to help in growing the economy.
An insightful discourse requires a holistic outlook to tackling the industry’s challenges. This entails exploring alternative models of flat operational structures compared to the existing top-heavy ones; offloading marginal or distressed shafts to operators without costly overheads; countervailing disadvantages in one sector with advantages in another; recognising that workers add value to investment; seeking ways to increase demand in platinum; and astuteness in managing the cyclical nature of the industry. Archaic methods and concepts that have, in the past, benefited companies instead of workers, communities and the rest of the economy, do not have a place in today’s SA. Saving the industry requires that all the roleplayers work together.
Lekorotsoana is chief of staff in the mineral resources ministry.