Stilfontein crisis of 2005 relived at Buffelsfontein with the planned retrenchment of 500 employees

It has been only three years since a large-scale unemployment crisis hit Stilfontein and now nearly 500 employees of Simmer&Jack’s Buffelsfontein Gold Mines Ltd (BGM) are again facing unemployment. Solidarity received a Section 189 notice this week, informing the trade union of BGM’s plans to retrench 500 of its 5 440 employees.

Solidarity compiled a complete analysis of Simmer&Jack to challenge the grounds of the planned retrenchments. The findings were presented at the first retrenchment meeting held with management on Wednesday.

According to the Section 189 notice sent to trade unions, the current economic situation, the increase in the costs of materials needed for mining, as well as the fact that Buffelsfontein could not reach production targets are given as the most important reasons for the planned retrenchments.

Nearly 300 employees at BGM’s #12 mine and a further 200 employees at other shafts may be retrenched. Furthermore, the company proposes only the minimum severance pay of one week’s salary for every year’s service.

“It has only been three years since Simmer&Jack took over BGM after the mines were placed under provisional liquidation by the previous owner, DRDGold. Thousands of workers lost their jobs in that time, which led to serious social problems in Stilfontein and the surrounding areas,” explains Solidarity spokesperson Jaco Kleynhans. “It is extremely worrying that these employees are again being placed under the pressure of job uncertainty. Solidarity will fight the process to the end and ensure that the interests of its members are protected throughout the process.”