Economy

SA mining union demands regulations for retrenchment processes

Date: May 23, 2025

The National Union of Mineworkers (NUM) in South Africa (SA) has called on the Mineral Resources Department to strengthen regulations that guide retrenchments processes in the mines

This comes after the mining industry shed over 13 000 jobs in the past year. Union workers marched to the department offices in the city of Polokwane, in the Limpopo province. Union members opposed to imminent retrenchments in the mining sector, citing that in the last four consecutive quarters, the mining sector had experienced high job losses. 

NUM is concerned that retrenchments are often targeted at young people. According to statistics, SA’s youth unemployment stands at 33.3%. NUM has called on the mining regulatory authority, to ensure that mines prove grounds for retrenchments conclusively, as mandated by the law. The union's Regional Chairperson, Rangers Molepo, says government must nullify mining licenses that are not being utilised.

“We have realised that mining companies retrench workers willingly and we are here to march against that to the Department of Mineral Resources & Energy regulator because they are the one issuing licenses they should be the one to revoke licenses where mining companies are not doing well. We have companies that have closed now they are under care and maintenance,” Molepo said.
Molepo says the union believes the imminent retrenchments are unjustified.

“We must agree that out laws are not tight enough. If you read the Labour Relations Act section 189, it only requires that the employer must give rationale why they should retrench, it does not really say you must really go deeper and check what are the real issues are. So you might find a situation where they say they are bleeding financially but you have nowhere to check if they are really bleeding,” Molepo said.

In the past financial year, the mining sector contributed 6% to the country's total Gross Domestic Product, which equates to approximately $24 billion.

--SABC--

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