De Beers and others must proactively intervene to prevent mining job losses

Solidarity is deeply concerned about the proposed temporary cessation of production at De Beers’ Venetia mine near Musina and the potential loss of more than 1 100 jobs at the mine as part of a broader process that could affect even more employees.

According to Willie Venter, Deputy General Secretary of Solidarity, Venetia is one of the largest employers in the Musina area and even a planned temporary closure would have a significant economic impact on the local community.

“Musina has limited alternative employment opportunities. Apart from agriculture and logistics operations related to cross-border transport, there are few other employment options for workers with mining skills. 

“When more than a thousand people suddenly lose their income, it affects not only the employees, but also hundreds of businesses and families that depend on that economic activity,” says Venter.

Solidarity points out that Venetia is not an isolated case. Earlier this year, Petra Diamonds announced business rescue at the Finch mine and retrenchments at the Cullinan mine. 

The diamond industry has been under pressure for some time due to declining global demand for natural diamonds, economic uncertainty and the increasing availability of cheaper synthetic diamonds. Venter says, however, that these challenges did not arise overnight.

“These are trends that have developed over months and even years. That is why it is concerning when employers confront their employees and communities with such sweeping announcements at relatively short notice,” he says.

According to him, South Africa urgently needs a more proactive process to address large-scale job losses in the mining industry.

“When it becomes clear that a mine or another large employer is experiencing serious economic pressure, there should be an expectation that early consultation with unions, government and other stakeholders will take place.  “By the time a section 189 process begins, the scope to explore creative alternatives is often already very limited,” explains Venter. 

Earlier discussions, he says, can create opportunities to explore alternatives such as retraining, redeployment or temporary employment of affected employees before large-scale job losses become unavoidable.

“At Venetia, development and other infrastructure work is continuing, even though production has been temporarily halted. If planning had been undertaken earlier, it could have been considered whether employees could be trained and temporarily employed to carry out that work. 

“Such possibilities become much more difficult to explore once the formal retrenchment process has begun,” says Venter.

According to him, transparent consultation will create opportunities for alternatives that limit the impact on employees and communities.

Venter says the mining industry remains one of the most important sources of employment in South Africa and that the country cannot afford repeated large-scale job losses imposed unexpectedly on communities.

“We call on government, employers and organised labour to work together to develop a framework that enables early warning, early consultation and greater cooperation when large-scale job losses are anticipated. 

“This will give employees, companies and communities a much better chance of finding solutions before a crisis arises.”