Retrenchment talk gets louder across sectors - by Karl Gernetzky SEVERAL companies have in recent weeks announced plans to retrench staff. Although unions say they have tried to stave off widespread layoffs, tougher economic conditions are likely to see more firms cut back as they make do with slimmer workforces. Gold producers Sibanye Gold, AngloGold Ashanti and Harmony have announced possible job cuts. SA’s premier steel producer ArcelorMittal has issued notices to 200 management-level employees though consultations are continuing. Telkom and MTN are in the process of finalising restructuring, also at management level. Solidarity’s head of metals and communications, Marius Croucamp, said last week 23 firms in the telecoms and mining sectors were looking to restructure, affecting about 4,000 employees. Although negotiations had been successful in getting people reassigned or securing them voluntary severance packages, by and large the union had seen a worrying trend in the cutting of skilled staff, whereas previously, unskilled employees were let go. We’ve been mostly successful in getting numbers down to the single digits, he said, referring to talks in which the union was involved. This was due largely to skills mismatches between available posts and individuals, not underperformance. This has also shown that those less affected have diversified skills, said Mr Croucamp, who added that the trend of restructuring may continue for the next two years. Labour analyst Andrew Levy said end-of-year restructuring was part of firms’ reorganisation ahead of a new year. There is a reasonable lack of optimism in investment … and a sense that the future is not bright in terms of labour (stability), he said. Gold prices have fallen 4% this year to $1,150/oz on a strong dollar and expectations of rising interest rates. In rand terms, gold has dropped about 14% from its March peak to about R41,000/kg. Market commentators and analysts have pointed to squeezed margins for gold producers, while the metal is no longer seen as an attractive way to diversify an investment portfolio. Harmony announced this month that it was looking to restore profitability to its flagship Kusasalethu mine. The company hinted at job cuts, but is expected to continue negotiations with unions in the coming weeks. The mine, the company’s largest, posted a R48m loss in the September quarter, and recently saw a two-week shutdown to sort out a problem with illegal mine workers. AngloGold Ashanti indicated this month that it would be looking to reduce employee numbers, but gave no figures and told unions it would be offering voluntary severance packages aimed at employees older than 55 years, and in overstaffed areas. Last month Sibanye Gold announced it was consulting with labour about potential retrenchments at its Cooke 4 shaft, which employs 2,500 people. Subsequently, the National Union of Mineworkers (NUM) — the majority union at the mine — announced there would be no layoffs after reaching agreement on avoidance measures. NUM spokesman Livhuwani Mammburu said last week there was still disagreement over notification from the company that it was looking to decrease staff by 217 people. The NUM had made it clear that this is not going to happen, he said. A merger in February between Sibanye and Newshelf saw the company give an undertaking of no retrenchments for two years. The NUM had approached the Competition Commission, which has issued a notice of breach, he said. Talks on voluntary severance packages would continue, he said. Article provided with the kind courtesy of bdlive.co.za
Posted on: Tue, 18 Nov 2014 08:00:01 +0000
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