/ MEDIA STATEMENT / The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.

The National Union Mineworkers (NUM) is shocked and saddened by Evander Gold Mine intention to retrench 1722 mineworkers in Mpumalanga. The company has a total workforce of 1812.

Evander Gold Mine is a subsidiary of  the Pan African Resources

Evander Gold Mine served the NUM with Section 189(3) notice of the Labour Relations Act to retrench workers.

The company informed the NUM that the retrenchments are as a result of an old mine with deteriorating and inadequate infrastructure, high operating costs such as rising electricity, labour costs, and a low gold price.

The NUM is totally opposed to these retrenchments at Evander Gold Mine. The retrenchment of 1722 permanent workers is bad given the fact that the majority of mineworkers support 10 people per family which mean that a lot of people will be negatively affected by these retrenchments.

The NUM is concerned that when mining companies issue Section 189 of the Labour Relations Act they do not align it with Section 52 of the MPRDA 2002, which states the following: “The holder of a mining right must, after consultation with any registered trade union or affected employees or their nominated representatives where there is no such trade union, notify the Minister in the prescribed manner- (a) where prevailing economic conditions cause the profit to revenue ratio of the relevant mine to be less than six percent on average for a continuous period of 12 months; or (b) if any mining operation is to be scaled down or to cease with the possible effect that 10 percent or more of the labour force or more than 500 employees, whichever is the lesser, are likely to be retrenched in any 12-month period.”

There is a need for a real transformation in the mining industry that emphasises on human development, not only profits.

Issued by NUM