Johannesburg – According to the trade union solidarity, Lonmin plans to retrenchment before the end of the year.
According to the Solidarity general secratery Gideon du Plessis Lonmin has plans to retrench 446 workers, and cut ties with 693 contractors before the end of December.
“This is poor timing from their side,” he said
Du Plessis also went on to say that as a union they are concerned by the fact that the retrenchment is only the first in a three phase process. This phase will also carry throughout 2018.
In August the Lonmin CEO Ben Magara released a statement sharing the difficulties the company is facing. In the statement Magara said that Lonmin is currently facing 70% of the sector was loss making.
“We cannot spend what we do not have,” said Magara. “We pay customers to have our metal, it is not sustainable.”
The company has been not able to pay shareholders their dividends for 6 years now. The company reported an operating loss of $181m for its interim financial results for the year 2017.
To cut some loss the company decided to move from their Johannesburg office, to the North-West province.