The National Union of Mineworkers (NUM) has raised serious concerns about ongoing retrenchments in the mining sector, as several companies issue Section 189A notices toward the end of the year. These layoffs leave workers facing a bleak festive season and an uncertain New Year.
Mining and Labour expert Mamokgethi Molopyane clarified that these retrenchments are not new but are part of a longer-term trend. “The retrenchments have been taking place for a while. Companies began restructuring their operations and informing workers of upcoming layoffs. If you recall, just before the recent elections, there were significant notices from certain companies indicating plans to retrench a number of workers,” Molopyane explained.
She also mentioned that the Minister of Mineral Resources had previously appealed to the mining sector to delay retrenchments during the election period. The current wave is the result of drawn-out consultation processes required under Section 189; she added.
Molopyane highlighted several factors contributing to the sector’s struggles, including the declining availability of resources and market volatility. She noted, “The Platinum Group Metals (PGMs) have been hit hard. Prices for platinum and palladium have dropped by 20% to 40%. The market is incredibly volatile, and while catalytic converters allow for some recovery and reuse of these metals, South Africa’s productivity in this area has been low.”
While gold experienced a strong year, PGMs, which are key to South Africa’s mining industry, have suffered significant losses. “South Africa is one of the leading producers of PGMs, so when the prices for these metals decline, it directly impacts most mining houses in the country,” Molopyane explained.
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