CAPE TOWN, May 24 (Xinhua) -- South African MPs on Thursday called for a change in current mining legislation so as to prohibit mining companies from unilaterally laying off mineworkers.
"It is high time legislation was reviewed to include a 'use it, or lose it' clause," said Sahlulele Luzipo, Chairperson of Parliament's Portfolio Committee on Mineral Resources.
This came after AngloGold Ashanti, the third largest gold mining company in the world, announced its plan to lay off 2,000 mineworkers.
The company said in a statement that it has made the difficult decision to begin a consultation process with employees in line with section 189 and 189A of the Labor Relations Act, with respect to restructuring its cost base to match and support a smaller operating footprint in South Africa.
"While all efforts will be made to limit the impact on employment, the current restructuring process contemplates some 2,000 roles across AngloGold Ashanti's South African business," said the company, which currently employs roughly 8,200 people in South Africa.
Luzipo said his committee learned with dismay of AngloGold Ashanti's plan to cut 2,000 jobs.
He pointed to a tendency of mining companies that close operations, but keep their mining rights.
"At the moment, mining companies are free to take unilateral decisions, even on matters that have far-reaching consequences for the welfare of workers," said Luzipo.
"The social contracts that mining companies and stakeholders enter into should contain clear clauses on how to mitigate eminent retrenchments," he said.
Luzipo said abandoned mines containing mineral deposits attract illegal miners.
Although aware of the drop in commodity prices internationally in the recent past, South African MPs strongly believe that the retrenchment plan is a slap in the face in a year dedicated to celebrating late president Nelson Mandela's legacy, said Luzipo.
The year 2018 marks the 100th anniversary of Mandela's birth. Preparations are underway to celebrate the event which will culminate on July 18, the date Mandela was born.
Rival organized labor unions have affirmed their commitment to engage with AngloGold Ashanti in order to find amicable solutions.
Luzipo urged other stakeholders to also participate in the engagements.