De Beers Group announces retrenchments; Anglo to implement drastic cuts – Solidarity

16 February 2016

In a section 189 retrenchment crisis, the mining giant De Beers today announced to Solidarity that it would soon start a large-scale retrenchment process. The company, owned by Anglo American, plans to cut 152 posts at its Venetia Mine outside Musina. In addition, the company envisages shedding approximately 214 posts at some of its other mines in South Africa. 

According to Solidarity General Secretary Gideon du Plessis, this announcement was made shortly before Anglo American’s briefing session where the company said its financial position had seriously deteriorated in the recent past. “Anglo American and De Beers want to reduce their mines from 53 to only 16 mines. Moreover, Anglo American wants to reduce its platinum mines in South Africa to only five, and it would sell Kumba Iron Ore. In addition, the company wants to sell all nine its coal mines in South Africa,” Du Plessis said.

Reacting to the above, Du Plessis called on the companies who will be buying Anglo American’s mines to honour the company’s good standards and conditions of service in a responsible manner. “We also call upon the new owners of the mines to ensure that there will be no retrenchments at the mines during the takeover process,” Du Plessis said.

Finally, Du Plessis also called upon Anglo American and similar companies to be honest about the real reasons for scaling down their South African operations. “If Anglo American’s scaling down is in fact linked to the unfavourable political climate in South Africa, the company’s management should state this openly. It is high time the government is called to account for their share in the downscaling by large international companies in South Africa,” Du Plessis said.

Statement issued by Gideon du Plessis, General Secretary: Solidarity, 16 February 2016