NUM criticizes Seriti resources for prioritizing profits over workers
MIDDELBURG – More than a thousand employees are at risk of being laid off if the proposed section 189 process by the mining conglomerate Seriti Resources moves forward.
Seriti informed the Highveld Chronicle on Thursday that the retrenchment procedure is currently underway and they are actively engaging with various stakeholders.
The company also stated that it intends to restructure its operations, leading to the impact on its Middelburg Mine Services (MMS) and Klipspruit operations, resulting in 1137 employees facing unemployment.
“Our multi-product operations at MMS and at Klipspruit South-East pit together with related opencast activities are not currently commercially sustainable and require material restructuring to improve unit costs and the prospects of future sustainability,” said Linda Khuluse, group spokesperson.
“Further, these mines continue to be adversely impacted by, amongst others, Transnet under-performance and generally market volatility.
At Seriti it is critical to ensure that every coal mine that we own and operate is commercially sustainable.”
Khuluse added that as a result, a single Section 189A consultation process – under the auspices of the Commission for Conciliation, Mediation and Arbitration (CCMA) – commenced on 16 September 2024 and is expected, in the aggregate, to affect up to 1 241 roles of which 1 137 employees are likely to be retrenched across MMS, Klipspruit operations and their corporate services team which is to be re-sized to service a smaller base of operational mines.
Group CEO, Mike Teke, stated that Seriti acknowledges the forthcoming exercise will have an adverse impact on their workforce and local communities, and is committed to ongoing engagement with stakeholders. “We have not taken this step lightly. We will continue to engage openly and constructively with our employees and organised labour to ensure the best outcome for all concerned,” he said.
Teke emphasized that Seriti is unwavering in its commitment to fulfilling its coal supply obligations to Eskom, domestic clients, and international markets.
Nevertheless, the National Union of Mineworkers (NUM) has criticized Seriti’s intention to lay off employees, alleging that the company is prioritizing profits by replacing skilled workers with contractors.
Bizzah Motubatse, the NUM Highveld regional chairperson, expressed the union’s indignation towards the decision, which they deemed as disrespectful and hasty. “The company wants to replace permanent employees with contractors ,” he said. “This is a declaration of war.”
