Zimplats, a subsidiary of Anglo-American Platinum (Amplats) has instructed its contractors to lay off workers, as part of a sweeping retrenchment consulting process that could claim thousands of jobs across the group.
Amplats has about 20,000 employees, including contractors, in its South Africa and Zimbabwe operations, which will also be affected by the possible job losses. The company reports that a preliminary 3,000 direct employees are likely to be affected, with others employed by contractors whose supply agreements will be reviewed.
The Weekly can exclusively reveal that over 300 workers at one of the Zimplats contractors Glenrise Investments have been fired, as the group reels from a substantial loss triggered by a downturn in global commodity prices.
Glenrise Investments is a subsidiary of the platinum giant, owned by Zimplats management with a portfolio as a services enabler that focuses on mining support, construction, civil engineering, land and property development, and procurement and hospitality among other services.
In an exclusive interview Zimbabwe Diamond and Allied Workers Union (ZDMWU) secretary general Justice Chinhema said Zimplats contractors have already started laying off workers on short-term fixed contracts.
“In Zimbabwe, Zimplats has instructed and has asked its contractors like Glenrights to reduce its workforce and more than 300 workers have lost their jobs.
“Unfortunately, what we have been saying all along is that the jobs in Zimbabwe are not secure people are being offered short-term fixed contracts and anytime they are terminated,” he said.
In scathing remarks on the government’s propensity to advance investment that exposes workers, ZDMWU’s Chinhema said the government should focus on progressive agreements which push for value addition and beneficiation to protect labour.
He said profit-oriented investors are short-changing the country at large and exposing workers to job insecurity in the form of exploitative short-term contracts.
“We want to see investors that come focus on beneficiation and value addition so that we have job security in Zimbabwe, companies make profits, and when the profits are going down they just fire workers.
“We want the government to put in place policies that protect workers so that our minerals have value, and we get proper investors in this country,” he said.
In a recent financial update Amplats group profits reportedly fell more than 70% in its year to end-December, while its cash pile almost halved and as a result, it had initiated a retrenchment process that may result in 4,000 jobs being lost.
Amplats said the Section 189 process will run over the next few months before it could be sure of the exact number. This is in addition jobs already lost at its head office late last year, which reduced head office roles by 30%.
“This review may result in the renegotiation of certain contract terms and scope, not renewing contracts when they expire and terminating other contracts within the contractual provisions,” said Amplats CEO Craig Miller.
The imminent job losses come despite the company responding “rapidly throughout 2023” to reposition it to cope with the lower platinum group metals prices that declined by between 14% and 60% last year.
“It is clear to us, however, that the extensive range of actions we have already taken do not go far enough,” said Miller. The group said after working through all the options, “it is apparent that further measures to create critical resilience and greater competitiveness are needed to sustain the business.”
Amplats said this action is necessary “to enable the continued employment of thousands of workers and contractors… As we progress the implementation of the Section 189A process, we will put in place the appropriate well-being support program to help our people through this difficult process as well as initiate comprehensive social impact mitigation measures,” said the company.