Zululand-based ZAC coal mine is alleged to be planning to retrench hundreds of its workers.
Bongani Hans
The National Union of Mineworkers (NUM) in KwaZulu-Natal has intensified its dispute with the Zululand Anthracites Colliery (ZAC), demanding the immediate cancellation of the company's mining rights.
The escalation comes after ZAC announced its intention to retrench about 650 employees at its Nongoma/Ulundi plant, a move the union has strongly opposed.
Muzikayise Zakwe, NUM's provincial secretary, has voiced concerns over the repercussions of the decision, saying, “The company will be breaking clauses of the mining rights if it continues with its plan.”
Zakwe has confirmed that the union is preparing for legal action if ZAC moves forward with the lay-offs, urging the Department of Mineral Resources and Energy to intervene.
NUM has officially written to the department requesting the immediate withdrawal of ZAC’s mining rights.
Zakwe said: "When it (the department) gives you a licence, it gives you commitments. If you retrench workers, you are breaching those commitments.”
He anticipates that the number of job cuts could rise to over 800, as ZAC has not yet finalised its figures.
This was not the first instance of mass job cuts at ZAC; during the COVID-19 pandemic, over 1,300 employees were said to have been retrenched, however the company said only 695 employees were affected in 2020.
Zakwe highlighted that ZAC's calculations should also factor in non-permanent workers, such as cleaners and security personnel, who may be left vulnerable amidst the turmoil.
While acknowledging that retrenchments can be a necessary evil for companies experiencing genuine financial distress, Zakwe has called out ZAC for a perceived lack of transparency.
“If you have not disclosed that during our previous negotiations, and instead paid bonuses, the rationale of retrenchment must be sound and must be convincing,” he said, adding that “It’s like a parent buying a new suit while being unable to provide for their children’s school fees.”
ZAC had recently accused NUM of demanding "unaffordable salary increases and the payment of a guaranteed annual 13th cheque” which it said was unreasonable given the operational challenges and low production levels currently faced by the mine.
In a statement issued last month, ZAC's management said they were committed to keeping the mine operational while navigating financial difficulties brought on by declining anthracite prices and increasing operational costs.
Recent strike actions have exacerbated tensions within the company, with reports of violence including gunfire targeting employee transport and vandalised electricity infrastructure.
"Continued strike actions exacerbate the operational difficulty and adversely impact potential strategic decisions," stated ZAC, indicating that the stability of the mine and the livelihoods of its employees were hanging in the balance.
Having been acquired in 2016, ZAC claims to have historically maintained over 1,000 jobs and contributed positively to community development through various initiatives.
ZAC General Manager Wiets Beukes expressed alarm at NUM's call for the withdrawal of its mining license, warning that such a decision would devastate not only jobs but also community support initiatives like Corporate Social Investment (CSI) programmes aimed at local upliftment.
Beukes emphasised, “The local community benefits from the company’s existence through investments exceeding R45 million in projects aimed at education and skills development.”
He mentioned that the colliery supplies 7,800 cubic litres of potable water monthly to over 300 households and that local procurement has reached R204 million over four years, sustaining approximately 44 local businesses.
Despite the grim outlook, Beukes noted that many employees retrenched in 2020 during the pandemic were re-employed as business conditions improved in 2021. Currently, the Section 189 process, which addresses retrenchments, is set to be facilitated by the CCMA, with discussions still pending a date for engagement between the parties involved.
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