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Wednesday , October , 20 2021
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NUM rejects the cocktail BEE transaction by Northam Platinum

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The National Union of Mineworkers (NUM) has learned with shock, dismay and concern the cocktail Black Economic Empowerment put together by Northam. This is more so on the basis that NUM representing the workers who mine the mineral wealth that will eventually fund this transaction were never consulted on the structuring of this deal, its financial model, employee participation percentage and how the so-called ESOP trust would be beneficiary managed, administered and controlled.

What becomes ironic with South African empowerment transactions, is the fact that 14 000 workers would be allocated 4% and two BEE consortiums would own more than 20% of 26% Mining Charter ownership requirement. Is this what Broad Based Empowerment has been relegated to? This is no different, employees and communities are just included like a cherry on top of a cake.

What concerns us more is the little regard the company CEO Paul Dunne has for its primary stakeholders, whose definition of consultation is limited to calling the NUM shortly before the transaction is released or announced. We should start asking ourselves, who is the biggest contributor towards the instability in the platinum belt? Do the industry captains possess the necessary capabilities to steer the ship (platinum industry) to it’s hey days, if they fail to engage its primary stakeholders (workers) on such an important Mining Charter compliance aspect.

We thus call upon the Minister of Mineral Resources through the Empowerment Directorate to vehemently reject this transaction in its current format, as it will fail the most potent objective of the mining charter; which is meaningful economic participation for all the beneficiaries. Not only focusing on BEE entrepreneurs, who seemingly are the only empowerment partners in the industry. The Broad Based aspects of empowerment must not only be legislation, but should be implemented as per the spirit and objectives of the Mineral and Petroleum Resources Development Act (MPRDA) of 2002 and the Broad-Based Black Economic Empowerment Act (as Amended) 2013.

The same call should go the Public Investment Corporation (PIC) as the majority shareholder and reported “funder” of the transaction, to review its position on this transaction in its current form. The blood, sweat and tears of public sector employees cannot be used to fund perpetual sugar coated regressive transaction. The NUM and its 275 000 members will continue fighting against this gross misrepresentation and economically unmeaningful transactions for its members today and forever.

The NUM still does not support the presence of Paul Dunne at Northam Platinum. Paul Dunne has a history of dividing workers and unions. He mastered this art at Impala Platinum and under his leadership the company triggered a tumultuous tide of turmoil in the platinum sector. Dunne recently said that a certain union has gained ground at Northam. The NUM is going to fight and expose this divisive character and his lies. This divisive character thrives on dividing workers. He is the real enemy of the workers.

At Impala, he refused to conduct membership verification through an independent verifier. NUM leadership has resolved not to stomach this behavior at Northam Platinum and we don’t rule out the possibility of this man plunging the mining sector into another chaos.

The union will never allow this divisive character to do what he did at Impala Platinum. The DMR should be proactive in promoting the spirit of the Framework agreement by holding defaulting entities responsible for creating a stable labour relations in the platinum sector.

For more information, please contact:
Ecliff Tantsi:082 941 4210: (NUM Chief Negotiator at Northam Platinum)
Luthando Brukwe: 072 022 3511 (NUM Head of Transformation)
Livhuwani Mammburu: 083 809 3257 (Acting NUM National Spokesperson)

National Union of Mineworkers
7 Rissik Street. Cnr Frederick, Johannesburg
Tel: 011 377 2111
Cell: 083 809 3257

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Source Url: http://www.num.org.za/News/tabid/91/entryid/115/num-rejects-the-cocktail-bee-transaction-by-northam-platinum.aspx
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