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Amplats set to bleed white-collar jobs

Johannesburg - Anglo Platinum [JSE:AMS] (Amplats) said on Monday it aimed to cut almost 7 000 jobs, up from 6 000, after months of talks with the government and unions.

Amplats, a unit of Anglo American which is trying to restore profits, said in addition to the 6 000 jobs it had been targeting, "approximately 900 corporate and overhead employees will also be affected."

The surprise addition of white-collar job cuts takes the planned job cuts to about half of the 14 000 initially proposed.

The company scaled back its original plans after a massive backlash from the government and unions, which have embarked on violent illegal strikes in the last 18 months.

More than 60 people have died in violent strikes in 's platinum belt since a bitter battle for membership between unions was taken from the mines to the streets.

"We are at a critical stage of the process and this restructuring will be a crucial step to enable us to return to profitability," said Amplats chief executive Chris Griffith

September 1

The miner said it will begin laying off the estimated 6 900 on September 1.

"A month's notice period for affected employees will commence on 1 September," said Griffith.

The firm, which accounts for almost 40% of global platinum sales, said it will aim for production of 2.2 to 2.4 million platinum ounces per year.

"The implementation of our proposals will help us create stability for the business," said Griffith.

Amplats said the ultimate number of retrenchments will depend on retrenchment avoidance measures such as voluntary severance packages, early retirement and re-deployments.

Amplats was one of several major international mining companies that have been pummelled by labour unrest.

Its profits have been obliterated by high wage bills and increased electricity costs. At the same time, expensive deeper mines yielded lower grade metals.

 - Reuters, AFP



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