ANC calls on mining companies to review job cut plans

“Those companies that are set to retrench, such as Lonmin, are called upon to review their decision, their plan will deepen the crisis in the economy,” secretary general Gwede Mantashe told journalists in Johannesburg, following the party’s lekgotla held over the weekend.

 

The relationship between government and the private sector was that of a love-hate relationship, he said.

 

“The relationship is one of unity and struggle, we sometimes hate and love each other…and we must because we need each other, this is why we make a call to the companies because we cannot issue a decree to the companies.”

 

The falling commodity prices had forced mining companies to cut costs through the shedding of jobs.

 

Platinum producer Lonmin announced on Friday thatit was closing some of its shafts at its Rustenburg operations, putting a total of 6,000 jobs at risk.

 

Chief executive Ben Magara said the closures, which he described as “swift, decisive, even though difficult measures”, were Lonmin’s response to the “platinum pricing crisis”.

 

Glencore also announced it would cut 600 jobs at its Optimum Coal Mines subsidiary.

 

When asked what government would do if the companies did not comply with the ANC’s call, Mantashe said the ruling party was set to meet with the companies’ management to ”show them our views’.’ -ANA

 

(File Photo: ANA)