This follows the completion of Section 189 consultations with trade unions as part of a restructuring of its South African operations. From Moneyweb.
Sibanye-Stillwater says its headcount has reduced by 14% since January 2023 as part of a restructuring of its southern African operations.
The number of employees and contractors in SA has reduced to just over 70 000 from about 81 500 at the end of 2022, representing a sizeable reduction in the wage bill.
This follows the closure of end-of-life shafts and plants, notably the Beatrix 4 shaft, Kloof 2 plant, and the Kloof 4, Simunye, and 4 Belt shafts at Marikana. Job losses also followed the restructuring of loss-making shafts (Siphumelele, Rowland, and Beatrix 1).
The gold and platinum producer says it was able to soften the impact of forced retrenchments through negotiation and by adopting avoidance measures with affected employees and contractors. Over the last 18 months, the total number of forced retrenchments was reduced to 966 employees out of approximately 11 500 impacted employees and contractors.
Read: Workers march against looming retrenchments at Sibanye
This is substantially less than the 3 107 employees and 915 contractors that were potentially affected in April 2024, when the group announced it was embarking on retrenchment negotiations as required under Section 189 of the Labour Relations Act.
A total of 629 employees opted for voluntary retrenchment packages, and 448 accepted transfers to other divisions in the company. Natural attrition reduced headcount by 116.
Following negotiations, it was agreed that mining operations at Beatrix 1 shaft would continue, provided there are no net losses on an average trailing three-month basis from 1 June. Should this not be sustained and subject to certain conditions, the shaft will be closed.
Read: Implats weighs 3 900 job cuts in South Africa as price rout takes toll
To reduce overheads, the SA gold and platinum group metal (PGM) operations will be consolidated into a single, more streamlined structure.
“The revised operating model and structure will enable operational teams to focus on core operational outputs with services support geared towards operational delivery and creating an enabling environment for innovation and sustainability,” says the company.
“We have restructured the SA region to align with the reduced operating footprint following the necessary operational restructuring for greater regional sustainability and profitability, and we are well positioned for ongoing shared value delivery,” commented CEO Neal Froneman in a statement.
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The Sibanye-Stillwater share price, down roughly three-quarters since peaking in March 2022, has been hammered by rising production costs and declining PGM prices. Results for the 2023 financial year show SA gold operating costs surging 60% since 2020 while all-in-sustaining costs were up more than 50% over the same period. This took the shine off the 24% rally in the rand gold price since 2020, while the average PGM basket price dropped 27%.
