Anglo American Platinum (Amplats) will lay off 3 700 employees across its platinum mining business across the country.
According to the company, this was necessitated by a profit decrease of 71% due mainly to a 35% decrease in the platinum group metals (pgm) dollar basket price during the 2023 financial year.
Amplats also highlighted that the move is influenced by the ongoing macroeconomic pressures and the necessity to fortify the company’s competitive position and long-term sustainability.
“The company has had to take active steps and as a last resort commenced a restructuring process in terms of Section 189A of the Labour Relations Act 66 of 1995 (S189A).
“The process will involve a period of consultation with stakeholders including trade unions and other affected non-unionised employees and only once this has concluded will the final number of impacted jobs be known.
“The restructuring is expected to impact a total of 3700 employees across the business,” said Amplats Chief Executive Officer, Craig Miller.
Miller added that the retrenchments will also result in a review of contracts with 620 service providers.
The company said it implemented extensive measures last year which seems to have not yielded expected results, thus requiring that further measures be applied to build the resilience that will sustain this business.
Miller said the decision was not taken lightly, as it will have a socio-economic impact on the workers, their families, and communities.
“These actions are necessary to continue the employ of thousands of workers and contractors who will continue to add value for our stakeholders, through salaries, taxes, and royalties, as well as procurement of goods and services from local suppliers.
We will approach and implement the process in line with our values and cultural commitments through centering our people and the impact this will have on them.
“The company is committed to putting in place appropriate programmes to support the well-being of employees through this difficult process, as well as a comprehensive social impact mitigation programme,” explained Miller.
Meanwhile, Impala Platinum and Sibanye-Stillwater last year announced retrenchments at the companies due to low profits.
