Sibanye-Stillwater has concluded a restructuring process at its South African gold operations and associated services. The restructuring, which began on 11 April 2024, was conducted under Section 189A of the Labour Relations Act.
Sibanye-Stillwater has shed 8% of its workforce since January 2023
The process involved consultations with organised labour and representatives of affected non-unionized employees. The company explored various measures to mitigate potential retrenchments and minimise job losses.
Key outcomes of the restructuring:
Beatrix 1 Shaft: Mining operations at Beatrix 1 Shaft will continue, contingent on achieving no net losses on a trailing three-month average basis from 1 June 2024. If this condition is not met, the shaft may be closed, affecting 422 employees and 100 contractors.
Voluntary separations and attrition: 629 employees opted for voluntary separation or early retirement packages, and 116 employees left through natural attrition.
Transfers and retrenchments: While 448 employees were transferred to other positions, 111 employees could not be accommodated and were retrenched, along with 1,130 contractor employees.
The company has also consolidated its South African gold and platinum group metals (PGM) operations into a single regional structure, supported by a streamlined services framework.
“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,” CEO Neal Froneman said in a media statement.
This revised model aims to enhance operational efficiency and sustainability.
Overall impact
Since January 2023, Sibanye-Stillwater has reduced its workforce in the South African region from approximately 81,500 to just over 70,000 employees and contractors.
This reduction is primarily due to the closure of end-of-life shafts and plants, as well as the restructuring of loss-making shafts.
Despite the significant impact on the workforce, Sibanye maintains that forced retrenchments were limited to 966 employees, thanks to cooperation with stakeholders and the implementation of various retrenchment avoidance measures.
“It is extremely encouraging that the restructuring efforts undertaken in the SA region have not only successfully and proactively addressed loss-making operations thereby securing the benefits and value they continue to bring to multiple stakeholders, but through cooperative consultation with stakeholders, limited forced retrenchments to just 8% of total employees impacted since January 2023,” Froneman concluded.
“We acknowledge and thank all stakeholders for their constructive engagement during this difficult period.”
