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1 980 workers to be ‘affected’ by Exxaro’s 2015 restructuring plan

22nd May 2014

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Mining major Exxaro Resources confirmed in an email to Mining Weekly Online on Thursday that it was in the throes of developing a restructuring plan that would “optimise its current operating model” and likely affect some 1 980 employees.

“Exxaro has engaged with organised labour in consultations regarding the group’s intended plan to optimise its current operating model and restructure some of its operations and functions to achieve improved efficiencies.

“Proposals on how to deal with employees that may be affected by such restructuring were given to organised labour for their input. Further engagement will take place to address the concerns of employees and organised labour,” the company said in a statement.

Exxaro’s comments came a day after trade union Solidarity indicated that it was opposed to various “controversial” clauses in the miner’s proposed restructuring plan, about which the union had been consulting Exxaro over the last week.

The union claimed that the plan, which would be implemented on January 1, 2015, would allow Exxaro to dismiss workers or charge them with misconduct should they refuse to accept the plan’s conditions.

Moreover, Solidarity said the plan would see workers moved to a lower salary category within six months of its implementation.

“Although the plan will better align the company and its services, we believe that certain parts of the plan are not in the employees’ best interests and we are particularly concerned about the fact that the employer wants to force its personnel in an unreasonable manner to comply with the plan’s conditions,” noted Solidarity spokesperson Louis Pretorius.

“As a result of this approach, there is an impression among the employees that the employer wants to reduce its personnel without having to pay severance packages," he noted, adding that, if implemented, the plan would also allow Exxaro to transfer employees from one business unit in the Exxaro parent company to another.

According to Solidarity, the employees who stood to be affected by the restructuring process would, among other things, be evaluated based on their disciplinary record, relevant knowledge and skills to determine if they were suitable for transfer to another business unit.

“It is also stipulated in the plan that the employer may make the final decision over whether an employee qualifies for such a transfer or not. Solidarity is of the opinion that the procedure by which the employer will evaluate personnel for a possible transfer is too subjective,” said Pretorius.

He added that some 74 employees would not be placed in other posts immediately and would be temporarily placed in a “so-called retention structure”.

“These employees will have to refresh their knowledge and skills before they will be considered for reappointment. In addition, they will, in all probability, have to perform additional tasks at the employer’s discretion. As such, the possibility exists that they will be overburdened with work,” Pretorius remarked.

While Exxaro would not respond to Solidarity’s concerns in detail, it confirmed that it would continue to work with the unions to reach a “fair and equitable” deal.

“As further engagement is to take place with the unions, the final solution still needs to be reached and we [will] communicate that in due course,” it stated.

Despite its concerns, Solidarity said it was “pleased” with the willingness of the company’s management to consult over the plan.

“Solidarity is positive that sensible solutions, which are favourable for both parties, will be found for the mentioned [concerns],” Pretorius noted.

Edited by Tracy Hancock
Creamer Media Contributing Editor

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