Exxaro Resources is considering retrenching 125 employees at its Leeuwpan coal mine in Mpumalanga as part of a restructuring effort to curb ongoing financial losses. The National Union of Mineworkers (NUM) has expressed strong opposition, accusing the company of replacing permanent workers with contractors to cut costs.
Section 189 Notice Served
NUM Highveld Regional Chairperson Bizzah Motubatse confirmed that the union was served with a Section 189 notice on Monday, signaling Exxaro’s intention to proceed with retrenchments within the next 60 days.
“We are very much unhappy, disappointed, and angry,” Motubatse said. “This will subject families to poverty merely because Exxaro is choosing to retrench workers instead of finding alternative solutions.”
Union Rejects Contractor Replacement Model
Motubatse argued that Exxaro is not shutting down the mine but instead plans to continue operations using contractors, who typically receive fewer benefits than permanent employees.
“What is disturbing us the most is that Exxaro is not closing the mine—they are going to retrench employees and continue mining using contractors,” he said. “This is about super-exploitation and maximizing profits at the expense of workers’ livelihoods.”
The union claims that Exxaro’s decision is driven by cost-cutting rather than unavoidable financial distress, pointing to the mine’s export-focused operations as evidence that coal prices are not the primary issue.
No Consultation Yet, Says NUM
Despite Exxaro’s earlier assurances of engaging with unions before finalizing any restructuring plans, Motubatse stated that no formal consultations have taken place. The NUM is awaiting communication from the company to begin discussions under the auspices of the Commission for Conciliation, Mediation, and Arbitration (CCMA).
Alternative Solutions Proposed
The union has suggested that Exxaro consider selling the mine to a buyer willing to retain permanent employees rather than resorting to retrenchments. However, Motubatse alleges that Exxaro’s leadership is unwilling to explore this option.
“We know there are potential buyers, but Exxaro does not want to sell. They want to continue mining with contractors to reduce labor costs,” he said.
External Factors Downplayed
While challenges such as cable theft, infrastructure vandalism, and power failures have impacted South Africa’s mining sector, Motubatse dismissed these as the primary reasons for Exxaro’s restructuring.
“These issues are unavoidable and affect all mines. If Exxaro was truly struggling due to external factors, we could have worked together on solutions,” he said.
Exxaro Yet to Respond
Efforts to obtain comment from Exxaro were ongoing at the time of reporting. The company has not publicly detailed its restructuring plans or responded to NUM’s allegations.
Broader Economic Concerns
The potential job cuts come amid South Africa’s persistently high unemployment rate, raising concerns about the economic impact on affected workers and their communities.
As discussions between Exxaro and the NUM unfold, the fate of 125 employees hangs in the balance, with the union vowing to fight against what it calls “greed-driven” retrenchments.
