By Delicious Mathuthu
One of Zimbabwe’s largest platinum producers, Zimbabwe Platinum Mines (Pvt) Limited (Zimplats) is on a retrenchment drive as global prices for the Platinum Group of Metals (PGM) continue depressed.
A subsidiary of Impala Platinum Holdings Ltd (Implats), Zimplats boasts of over 8000 workers which could see massive restructuring as a result.
The company Chief Executive Officer, Alex Mhembere said the company is starting with voluntary retrenchment with benefits.
Mhembere said the situation is not expected to improve anytime soon and measures to minimize company costs have necessitated the move.
“PGM prices remain very weak and this situation is projected to last for the next 12-18 months.
“We have been working with all teams across the board in implementing various cost containment and cash preservation programmes,” he said.
“While our cost containment and cash preservation programmes yielded expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken.
“One of the measures that the company will implement is a voluntary retrenchment exercise for all employees wishing to be considered,” Mhembere said.
He said voluntary retrenchment is to try and avoid compulsory retrenchment, if successful.
Zimplats applications for the voluntary retrenchment were set for between Tuesday 19 March, 2024 and Friday 22 March 2024.
Mhembere said approval of the retrenchment applications is however at the discretion for the company.
“It is important to point out at the outset that management reserves the right to approve or decline any application based on business requirements and this is not subject to an appeal process,” he said.
Those successful, the company said, will
be paid two weeks for every completed year during service to the company, one-month’s notice pay, package pay-outs, among other benefits.
As a method of attracting more employees for the voluntary retrenchment, Mhembere said those who are successful will be given first consideration back into the company once things normalise.
“Approved applicants will receive a voluntary retrenchment agreement detailing the terms and conditions of the retrenchment including all payments due.
“Employees who proceed on voluntary retrenchment will be considered good leavers and will be eligible for re-employment in future whenever suitable new opportunities arise.”
The PGM price is affecting not only Zimplats but other mining concerns in Zimbabwe which include Midlands giants Unki and Mimosa mines, as well as regional platinum producers.
Afreximbank says the low PGM prices are temporary and expected to slowly normalise as the supply side als slows down, however, this will be towards the end of 2024, through to 2025.
Most producers, as Afreximbank says, will make losses in 2024 while smaller platinum producers risk closure.
Platinum is mostly used in the automotive industry which caters for just over 60 percent of global consumption, as well as jewellery, chemicals, petroleum, glass among others.
At regional level, the PGM price depression has seen platinum giant, Amplats, which produces approximately 40 percent of global platinum, targeting to retrench over 3 000 of it’s 20 000 strong workforce.
Amplats, which is Anglo American Platinum, is the largest platinum producing company in the world with activities mostly covering South Africa, the second largest producer after Russia, and Zimbabwe.
Zimbabwe Diamond and Allied Workers Union (ZDAWU) Secretary General, Justice Chinhema confirmed the laying off of workers on short-term fixed contracts in the platinum industry.
“Zimplats has instructed and has asked its contractors like Glenrise Investments to reduce its workforce and more than 300 workers have lost their jobs,” Chinhema said, as quoted by the Centre for Natural Resource Governance (CNRG).
Kwedu Classics
Your story our story
