South Africa
South Africa

South African labor union expressed shock to platinum producer Lonmin’s 4,100-job cut plan on Tuesday.

National Union of Mineworkers (NUM) spokesman Livhuwani Mammburu told Xinhua that the union heard about the retrenchment today, “Our members have been informed about the plans to cut jobs.”

The North West-based mining company has announced that it was intending to retrench a total of 4,100 workers at six mines that no longer have ore to reduce expenditure.

Lonmin’s spokesperson Wendy Tlou said the company would now begin a process to ensure that the retrenchments were in line with the country’s labor laws.

Lonmin’s announcement comes at a time when the company is set to be purchased by Sibanye-Stillwater, the largest individual producer of gold in South Africa and one of ten largest gold producers globally.

Mammburu said “We are worried about these retrenchments happening at a time when Lonmin is being bought. What if Sibanye-Stillwater decides to cut more jobs after?”

He said that unions would persuade the company to consider other measures over slashing jobs.

In February, Sibanye-Stillwater said it planned to cut nearly 6,000 jobs due to financial losses at some of its gold mines.

South African mining companies especially in the gold sector have been under pressure recently due to declining gold prices. Enditem

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