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Cape Town - President Jacob Zuma has called on mining companies to reconsider proposed measures to shed jobs as a cost-cutting measure.
Speaking at a National Women’s Day celebration in Sasolburg in the Free State on Sunday, Zuma admitted that the country's economic growth is not sufficient to create more jobs.
"Unemployment, poverty and inequality remain a stark reality," said Zuma. He added: "We are therefore concerned about the talk of massive job cuts in the mining and steel sectors."
This comes as at least seven listed mining companies have announced plans to cut as many as 10 000 jobs.
READ: Jobs ‘bloodbath’ hits SA, mining companies cut costs
In the steel sector, ArcelorMittal South Africa [JSE:ACL] is considering closing its Vereeniging plant which could lead to the loss of about 1 200 jobs, while Evraz Highveld Steel and Vanadium [JSE:EHS] has said it may halve its 2 242 workforce.
Glencore's Optimum coal operation announced in July that it would cut 380 jobs at Optimum and shut part of the mine due to lower coal prices. Lonmin [JSE:LON], the world's third-largest platinum producer, said it is set to cut 6 000 jobs in South Africa due to falling prices and high costs.
Anglo American Platinum [JSE:AMS] said it plans to overhaul a number of its South African mines to make them more profitable in the face of depressed prices.
This could lead to up to 420 job cuts, mostly managerial and supervisory positions, and did not include its Rustenburg and Union mines, which were earmarked for disposal, said the platinum miner.
Zuma said there is understanding for the economic pressures the business sector is facing, but urged companies to do as much as possible to "contain the difficulties" and "not to resort to retrenchments at the first possible opportunity".
Said Zuma: "The retrenchments would have a huge negative impact on the social and economic landscape in the affected provinces and will affect scores of families and communities.
"We trust that business and labour will engage fruitfully on this matter. Government stands ready to support and assist wherever possible."
ANC general secretary Gwede Mantashe said at a lekgotla in July that it is "unpatriotic" to cut jobs every time the mining cycle experiences a downswing.
READ: ANC asks mining firms to reconsider job cuts
"Companies must not take the decision of destroying jobs easily. Hold on and work until that price of commodities picks up," said Mantashe.
The National Union of Mineworkers (NUM) has spoken of a "bloodbath" of job losses in the mining industry, calling this a "tragedy."
"We are going to fight against any job losses. It is very painful to see. The high number of retrenchments will contribute to (the) high unemployment rate in SA," said NUM.
