NUM Highveld Youth Structure is distraught with the decision taken by Seriti Klipspruit to retrench 775 permanent employees

Media Statement, 20 September 2023

The National Union of Mineworkers (NUM) Highveld Region Youth Structure is deeply distraught with the decision taken by Seriti Klipspruit Colliery a subsidiary of Seriti Power embarking on Section 189 (3) and 189 (A) of the Labour Relations Act to retrench 775 permanent employees. 

Management is sighting Operational Performance at KPS that has not yielded the desired and expected business value that was anticipated. They further mentioned significant operational challenges. All these valuations are clouded by a capitalist profiteering standpoint which leads to a biased approach to material diagnosis. 

The critical challenges that were mentioned by Seriti Management are but not limited to:

1. High strip ratios and high mining complexity lead to high production costs.
2. Depressed coal market pricing which Seriti has no control or influence on
3. Transnet Freight Rail (TFR) was not able to evacuate coal to Richards Bay Coal Terminal
4. Resulting in the diversion of secondary products to a domestic market at a much-
5. reduced price.
6. Increased logistical costs on the secondary product.

As the youth structure, we are deeply concerned about Seriti Management's approach in dealing with and diagnosing these matters, they portrayed an arrogant approach overlooking some proper consultation channels.

They have also told NUM, that the technical team performed an in-depth review of KPS business and recommended operational improvement initiatives. They included the following.

1. Contractor expenditure optimization initiatives with a focus on headcount and cost savings.
2. Reviewed equipment allocation
3. Embarked on shovel productivity improvement initiatives.
4. Increase volume output by accessing coal reserves through underground mining.

Seriti Resources is a 91% black-owned company, which envisages a bright future. However, the envisaged bright future for the employees in this Region has turned into a dark cloud, ever since this company finalized the acquisition of South 32 SA Holdings (SAEC) on the 1st of June 2021.

Seriti Recently retrenched in Khutala Colliery cost plus mine which supplies coal to Kendal Power Station in Mpumalanga. On the 11th of September 2023 again served NUM section 189 notice, highlighting that 775 employees are likely to be impacted and 605 positions are redundant in Klipspruit.

The capitalism demonstrated by Seriti is really disturbing in this region. Seriti is aiming to replace permanent employment with contractors. This antagonism and obnoxious act demonstrated by Seriti exacerbate the exploitation of black people in South Africa.

On the 21st of April 2023, Klipspruit commemorated Project Umwabu with the presence of the Minister of Mineral Resources, Mr Gwede Mantashe without a contingency plan for placing permanent employees. A contractor called Blue-Mining was also invited to celebrate a 25-year contract they signed with Seriti transited from opencast Mining to Underground Mining, subsequent to Mining cost implications such as a high strip ratio at Pit BD/Klipspruit extension. It is excruciating that Seriti opted to retrench permanent employees instead of re-skilling those employees for Underground Mining.

This company has an influx of contractors across all its operations, and this is a clear demonstration of promoting cheap labour which NUM eradicated since its formation in 1982. The superfluous antagonism demonstrated by Seriti is also contributing to the high rate of unemployment of youth in South Africa. 

For more detailed information, please contact:

Ntobeko Khanyile, NUM Highveld Region Youth Structure Chairperson, 079 623 0982

 Bongi Masango, NUM Highveld Region Youth Structure Secretary, 079 786 5972

Sifiso Khumalo, NUM Highveld Region Youth Structure Deputy Secretary, 073 620 8227

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

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