Amplats holds back on laying off 14 000 for two months

28th January 2013 By: Martin Creamer - Creamer Media Editor

JOHANNESBURG (miningweekly.com) – A decision on the proposed retrenchment of 14 000 employees of Anglo American Platinum (Amplats) has been suspended for two months, the South African Broadcasting Corporation (SABC) said late on Monday afternoon.

The SABC broke into its routine programming to give airtime to a radio reporter who broadcast from outside the door of the boardroom where a meeting of the government-led platinum task team had taken place, that the additional time would be given to the finalisation of the retrenchment, which has caused a major rift between Amplats and Anglo American on the one hand and the Mineral Resources Minister Susan Shabangu and African National Congress (ANC) secretary-general Gwede Mantashe on the other.

The row broke out despite Amplats' offer to redeploy 4 600 of those retrenched to other mining jobs within the Anglo American group and elsewhere in the mining industry, as well as upskill the remaining people retrenched for non-mining jobs, 6 000 of them in house building.

Amplats has a R800-million social fund to deal with the impact of the loss of jobs that emanate from the review of its platinum portfolio, which involves the closing of two mines, the suspension of four shafts, the sale of the Union mine and the termination of the 14 000 jobs.

Some R300-million has been allocated for the building of new houses to accommodate Amplats mine personnel.

The platinum task team talks have been held under the banner of the Mining Industry Growth, Development and Employment Talk Team, known as Migdett, which was established two years ago as a government, business and labour joint venture to minimise job loss in the mining industry by focusing collectively on growth and development.