The company has told Business Report that multi-product operations at Middelburg Mine Services (MMS) and at Klipspruit South-East pit together with related opencast activities require material restructuring to improve unit costs and enhance prospects of future sustainability.
The National Union of Mineworkers is dragging Seriti Resources to the Labour Court over the retrenchment of more than 1 000 workers from the company’s coal operations.
NUM and Seriti have been embroiled in a bitter labour dispute over the past few months after the coal miner’s decision to retrench. Seriti argues that the employees being laid off are from operations that are no longer commercially sustainable due to Transnet under-performance and market volatility.
The company has told Business Report that multi-product operations at Middelburg Mine Services (MMS) and at Klipspruit South-East pit together with related opencast activities require material restructuring to improve unit costs and enhance prospects of future sustainability.
With successive engagements failing to yield a common breakthrough between labour and the company, the NUM said on Friday that its Highveld Region had taken a decision to approach the Labour Court to challenge or fight the decision taken by Seriti Resources to retrench the 1,143 workers in Mpumalanga.
"We have already activated our lawyers to approach the Labour Court,” said Bizzah Motubatse, NUM Highveld regional chairperson.
A last minute effort to save the situation on Thursday last week between NUM and management from Seriti Resources MMS and KPS operations could not result in a breakthrough.
“It was our third consultation since we were served with s189 by the arrogant employer to retrench 1 143 workers. Seriti Resources made its presentation, and it was clear that the majority of our members in MMS and KPS are facing unemployment,” said NUM.
Mike Teke, group CEO for Seriti, recently said they recognised that the retrenchments “will negatively impact our workforce and local communities” and added that the decision to lay off the workers had not “been taken lightly”.
He said Seriti was committed to “engage openly and constructively with our employees and organised labour to ensure the best outcome” for all concerned.
NUM said the presentation made by Seriti to labour on Thursday emphasised the company’s resolve to retrench employees from the respective operations.
Seriti insists that it is “critical to ensure that every coal mine that we own and operate is commercially sustainable” as it remains committed to “honouring its coal supply obligations to Eskom, inland customers and the export” market.
Seriti Resources purchased South32’s South African thermal coal business recently while it also operates assets formerly owned by Anglo American. The company, which operates large-scale opencast and underground mines, is a big supplier of thermal coal to Eskom.
BUSINESS REPORT