The National Union of Mineworkers (NUM) has voiced strong opposition during a march in Polokwane, Limpopo to the ongoing retrenchments in the mining sector, calling them “unjustified” and demanding immediate intervention from regulators.
The union claims that job losses have plagued the industry for four consecutive quarters, with young workers disproportionately affected. NUM has urged the Department of Mineral Resources (DMR) to enforce stricter oversight, ensuring that mining companies provide conclusive proof for retrenchments as required by law.
Demands for License Revocation
NUM has also called for the revocation of mining licenses held by companies that have ceased operations or placed mines under “care and maintenance” without valid justification.
“We have realized lately that the mining industry is retrenching workers willy-nilly,” a union representative stated during a protest outside the DMR offices. “The regulator must step in—they issue licenses, so they must ensure compliance. Mines that are not operational must have their licenses revoked.”
Legal Loopholes Exploited?
The union argues that current labor laws, particularly Section 189 of the Labour Relations Act, are insufficient. While the law requires employers to provide a rationale for retrenchments, it does not mandate deeper scrutiny into their financial claims.
“Our laws are not tight enough,” the union said. “A company can claim financial distress, but there’s no way to verify if they are truly struggling. This leaves workers vulnerable to unfair dismissals.”
Social and Economic Impact
Retrenchments have far-reaching consequences, NUM warns, exacerbating unemployment and fueling social ills such as crime. Many affected workers, particularly the youth, are left with minimal support, relying on inadequate government grants.
“When mines retrench young people and keep older workers, it deepens youth unemployment,” a union member said. “R350 grants are not enough to survive, pushing desperate individuals into crime.”
Mining Sector’s Economic Contribution
Despite the job cuts, the mining sector remains a key economic driver, contributing 6% to South Africa’s GDP—approximately R433 billion in the past financial year. NUM insists that if the industry is profitable, retrenchments should not be the first resort.
The union has vowed to continue pressuring the DMR to enforce compliance and protect jobs, warning that failure to act will lead to further unrest in mining communities.
