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Gold Field’s chief executive Nick Holland says he’s not considering resigning after Mining Minister Gwede Mantashe blamed management for the woes and lay-offs at the South Deep Mine.
Mantashe said today that Gold Fields’ plans to cut jobs in South Africa to reduce costs is taking the “easy way out” and avoids tackling the real issue of poor management.
Gold Fields, which is due to report half-year results later on Thursday, said this week it would cut 1100 permanent jobs at its struggling South Deep mine, sending its shares plummeting.
“Gold Fields is sitting on the second biggest gold deposits in a mine in the world,” Mantashe told Reuters.
“Going for job cuts is the easy way out. The real problem is poor management.”
Communications Minister Nomvula Mokonyane said today that the mining sector must transform to ensure that workers’ rights, dignity, health and safety were not compromised.
Reflecting on the tragic events that happened in Marikana six years ago, the minister said the State had started implementing the recommendations made by the Marikana Commission of Inquiry.
In August 2012, 44 people died following days of violence during a protracted wage strike by workers at the Lonmin platinum mine in the North West.
The outcome of the inquiry made recommendations, which included compensation for the injured and their families; examining the procedures of Public Order Policing, and preparing valid cases for prosecution, according to applicable laws.
The government outlined its plans to improve the lives of South Africans include rural development, economic development, building sustainable, integrated, safe and secure human settlements.
“Also of importance is sorting out issues under the Labour Relations Act on the employer/employee relationships. Strengthening the bodies and structures of engagement between the worker and employer is quite important. Transformation of the mining sector is also important.
“The Department of Human Settlements launched a R700 million housing project for Marikana. To date, 544 housing units have been completed. Substantial progress has also been made in the upgrading of informal settlements in mining communities,” the Government Communication and Information System said.
In addition, the government and mining companies in Rustenburg, Madibeng region, were engaged in private-public partnerships in sharing bulk and reticulation infrastructure in order to deliver basic services such as water and sanitation to mine communities.
The mining companies involved in this partnership included Lonmin and Samancor (Western Chrome Mines).
The government also mentioned the national minimum wage, which had been supported by organised business, labour and community.
“Once implemented, the national minimum wage will immediately benefit and uplift the socioeconomic status of up to 6.4 million workers in our country,” the Government Communication and Information System said.
– Additional reporting by SAnews.gov.za
