Minister Ngoako Ramatlhodi: Media briefing on outcomes of task team on job losses

Statement by the Minister of Mineral Resources, Advocate Ngoako Ramatlhodi, at the media briefing to announce the outcomes of the task team on job losses

Leaders of organised business and organised labour represented here
Members of the media
Ladies and gentlemen

In the face of challenging global economic conditions and the high risk of job losses facing the mining industry, I called for a retreat of leaders in the industry on the 5th of August 2015. This retreat concluded that a tripartite technical team comprising government, business and labour must convene to develop an intervention strategy to address the challenges facing the mining industry in respect of the risk of job losses.

This Technical Task Team has been meeting regularly since August 5th and has identified 10 intervention areas and made recommendations as to how challenges that can result in job losses should be addressed. Today, the leaders in the industry are in a position to issue a joint declaration demonstrating their commitment to save jobs and ameliorate the impact of job losses. The interventions are as follows:

1. Delaying the implementation of retrenchments – The intervention allows for consultations to be extended to the extent that they will continue during the section 189 of the Labour Relations Act notice period, to allow for the implementation of the interventions.
2. Enhancing productivity and managing cost pressures – To improve efficiency.
3. Accelerated concurrent rehabilitation activities to create alternative jobs for mineworkers
4. Facilitating the sale of distressed and other mining assets- to wherever possible save and even create jobs in the hands of other  operators.
5. Other alternatives to avoid job losses – which require the development of a framework for management, employees and the unions to explore further options on a case by case basis, such as utilising the  training layoff scheme, reskilling of employees and transfers between companies, etc.
6. Support for mineworkers in the event that job losses cannot be avoided – which includes support relating to UIF, counselling and training.
7. Utilisation of the Multinational Companies’ procurement levy to also support employment opportunities for retrenched mineworkers  –  In terms of the Mining Charter, multinational suppliers of goods to the mining industry must contribute towards a development fund, which fund could be utilised to provide relief in terms of creating alternative jobs for mineworkers.
8. Streamlining the processes for downscaling, updating the database and exploring fiscal instruments- to enable comprehensive management of the circumstances facing the industry.
9. Investment promotion and market development; - This includes joint promotional activities and increasing demand for South Africa’s minerals.
10. Communication and implementation plan.- A milestone plan has been developed and progress with its implementation will be communicated from time to time.

I would like to thank all stakeholders who participated in the task team, and to commend them for committing fully to the process, at the highest level of their respective organisations. I am confident that all of us will ensure that this Declaration is implemented fully, in the interests of all involved.