Mines urged to retain jobs

01/07/2015. Secretary General of the ANC Gwede Mantashe during the alliance summit held at St Georges hotel. Picture: Thobile Mathonsi

01/07/2015. Secretary General of the ANC Gwede Mantashe during the alliance summit held at St Georges hotel. Picture: Thobile Mathonsi

Published Jul 27, 2015

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THE ANC called on mine companies yesterday to review their plan to cut thousands of jobs as it would worsen the struggling economy.

“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 said following the party’s lekgotla at the weekend.

The relationship between the 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 that it 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 the 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”.

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