Amplats to cut around 7 000 jobs in SA

The world biggest platinum producer, Anglo American Platinum, has declared to shed off around 7 000 jobs from its African mines, where in approx 900 are corporate and overhead employees will also be affected. This announcement was immediately caught by severe criticism from some powerful unions of SA giving rise to another violence where dozens of workers were killed last year. Amplats had aimed for 14 000 job cuts, but reduced the number after series of strikes by various unions.

Not only blue-collar workers but white-collar workers would also be affected by this announcement. The NUM (National Union of Mineworkers) spokesman Lesiba Seshoka said “We are shocked with such a big job cut off as according to the agreement only 3 000 jobs were to be cut off and that also with voluntary decision without any kind of force.” This job cut will result in lower production and may support the prices of platinum used in emission-capping catalytic converters in automobiles. The price has been greatly affected due to the poor global demand.

Amplats Chief Executive Chris Griffith said that “We are at a critical stage of the process and this important decision will enable us to return to profitability.” The targeted employees will be given a month’s notice period starting from September 1.  Due to a high rate of employee turnover in its SA mines, Amplats may shed some jobs without replacing it.

This is a sensitive matter for the elections to be held next year. Mining companies are striving to cut the costs as far as possible to deal with the decreasing metal prices while the militant union is forcing hard for better salary and working conditions for miners. More than 60 people died in the violent strikes in SA’s platinum and gold regions as the war between the NUM and the Amcu (Association of Mineworkers and Construction Union) had taken a wild form.

Not only platinum but gold sector is also likely to face the job loss. The talks regarding the job cut off was heard from long time but the company made its final announcement on Monday. But the unions are likely to oppose this decision by more and more strikes and protest against this. This year Amplats is aiming to produce around 2.2 to 2.4 million ounces. Last year the company produced 2.379 million ounces - by Reuters.