Vavi rages over Anglo’s massive job-shedding
FORMER Cosatu general secretary Zwelinzima Vavi has slammed mining houses for taking the easy way out by cutting jobs when they can’t make a profit.
“When commodity prices drop, they go for the soft targets, which are the workers. When commodities are booming and they are making millions, workers still suffer and remain in poverty,” he said yesterday.
Vavi was commenting on the news that Anglo American is considering shedding around 85 000 jobs.
“Workers never win either way. The fact that they (Anglo) are not making a profit is not an excuse,” he added.
Vavi said the government was warned about the crisis years ago.
“Now we are in a crisis. By the way, it’s not Anglo only that is retrenching; steel companies are also retrenching. Thousands of workers will lose their jobs as it is.”
In an attack on Cosatu, Vavi said there was a void of coherent workers’ movements to put back “the spear into the hands of the workers”.
“The workers are now powerless. There are no relevant unions, Cosatu is dead or in ICU (intensive care unit). They are not raising any of these issues.”
Anglo has unveiled a drastic restructuring plan that will result in the suspension of dividends, with some subsidiaries issuing profit warnings.
The world’s fifth-biggest diversified global mining group by market value saw its shares fall by as much as 12.9 percent, making it the biggest faller among shares included in the All-Share Index, while plunging to the lowest level in more than 20 years.
Anglo said it would cut its assets by 60 percent and reduce its workforce to 50 000 from 135 000 – the deepest job cuts announced in the sector since the commodity crisis began.
Unions also reacted with shock yesterday to the news that Anglo would shed tens of thousands of jobs and sell or close many of its mines. National Union of Mineworkers (NUM) acting spokesman Livhuwani Mammburu said: “They’ve made a quick decision without consulting the union or the employees, who have a right to know and to be told directly. We are shocked.”
He said NUM would be fighting to ensure jobs were protected during the restructuring.
Sizwe Pamla, Cosatu’s national spokesman, said this was a crisis the government was doing nothing about. “We have had thousands of job losses in the metals, manufacturing and communications industries as well.
“We have been calling for a summit on how to address these job losses, because we believe there should be a combined strategy on how to act going forward by the government, the workers and the unions.
“We have thousands of people sitting at home and the government is sitting on the sidelines doing nothing while social instability sets in as we have seen, with strikes by students and municipal workers.
“This is causing a rift between the government and labour, and if nothing is done, we will be forced to take action to force the government to take action,” he said.
Wits University’s Professor Jannie Rossouw said this was a serious blow to the economy.
“We cannot afford to lose even one job, let alone 85 000. We are in a difficult economic situation in this country and the government doesn’t seem to realise it, with announcements of R4 billion on jets for the president.”
But Anglo American spokeswoman Shamiela Letsoalo denied that the company did not inform the unions of possible jobs cuts.
“Our engagements with our key stakeholders in South Africa and elsewhere have been ongoing in terms of our company strategy and the restructuring of our global portfolio. The actions we are proposing are consistent with our strategy in terms of planning for market conditions.”