NUM slams employee retrenchments at SERITI Resources

The National Union of Mineworkers has slammed the impending retrenchments at SERITI Resources. Picture: File

The National Union of Mineworkers has slammed the impending retrenchments at SERITI Resources. Picture: File

Published Sep 18, 2024

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The National Union of Mineworkers (NUM) in the Highveld Region has slammed the impending retrenchments at SERITI Resources where more than 1 143 workers are set to lose their jobs.

The opencast mining giant, which supplies Eskom with coal, also confirmed this in a statement on Tuesday.

NUM regional chairperson Malekutu Motubatse denounced the mining company’s latest decision, saying it was impulsive, capital-driven and perpetual.

“The National Union of Mineworkers (NUM) Highveld Region is taken aback and angered by the total disrespect and impulsive decision taken by SERITI Resources to retrench 1 143 workers. This is capitalist barbarism at its best and exploitation of poor workers that cannot be tolerated.”

Motubatse added that since taking over the mining operation, SERITI Resources had continued to retrench and subject workers to Section 189 letters.

Previously, the mine belonged to Anglo and South 32, with the new owners, SERITI, having initiated similar processes in some of its other operations at Middleburg Mines Management (MMS), Khutala, Kriel and, now, Klipspruit.

“The massive retrenchment by SERITI Resources has subjected our members to unemployment and abject poverty. What is so astonishing is that in Klipspruit, SERITI Resources replaced permanent employees with contractors. The main objective is to exploit and maximise profit.”

He said the latest retrenchments at MMS was being conducted under the guise of the “so-called New Business Model” which the union was opposed to.

“The question is: For how long is SERITI Resources going to replace quality jobs with contractors? The NUM will be embarking on a massive mobilisation to try to stop SERITI Resources from undermining unions by retrenching employees willy-nilly.

“The NUM is making a clarion call to SERITI Resources that if SERITI is unable to run and operate these operations, SERITI must sell them to mining companies that have respect for the unions and the workers,” he added.

In a statement, SERITI spokesperson Linda Khuluse said the reason for the retrenchments was due to issues of profitability affecting opencast mining which was not as stable and profitable as other mining activities.

“Our multiproduct operations at Middelburg Mine Services (MMS) and at Klipspruit South-East pit together with related opencast activities (Klipspruit Opencast) are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability. Further, these mines continue to be adversely impacted by, amongst others, Transnet under-performance and generally market volatility,” Khuluse said.

Mike Teke, the group CEO of Seriti Resources, said the mining company had tried everything in its power to avert the situation.

“We recognise that this exercise will negatively impact our workforce and local communities. We have not taken this step lightly. We will continue to engage openly and constructively with our employees and organised labour to ensure the best outcome for all concerned,” he said.

However, the union is of the view that the SERITI Resources does not respect either the unions or employees and it did not value its employees.

“The NUM will be engaging with Minister of Mineral Resources and Energy Gwede Mantashe to intervene and save the jobs of ordinary employees.

“We are optimistic that Minister Gwede Mantashe will assist as the level of unemployment in the country is very high, therefore, we cannot allow SERITI Resources to sleep and the moment they wake up, they retrench,” the union said.