RTRS; SAfrica union says Lonmin may cut 4,000 mine jobs
JOHANNESBURG, Nov 28 (Reuters) - South Africa's Solidarity union said on Friday that No.3 platinum producer Lonmin (LMI.L: Quote, Profile, Research) (LONJ.J: Quote, Profile, Research) had notified it that it plans to cut a total of 4,000 jobs at two platinum mines.
Lonmin said on Nov. 18 that it would close some high-cost mines and cut costs to survive a market downturn. The company, which has repeatedly cut its sales targets, also announced it would conduct sweeping restructuring with a slimmed down management structure.
Lonmin advised trade unions in October of possible lay offs due to a big drop in demand for platinum from car makers, made worse by the global economic meltdown.
"The trade union Solidarity today received the official Section 189 notice from platinum producer Lonmin," the union said in a statement.
"According to this, 4,000 employees, including 3,000 at Western Platinum Ltd and 1,000 at Eastern Platinum Ltd, could lose their jobs."
South Africa's biggest mine workers union, the National Union of Mineworkers (NUM), on Thursday held a protest against the proposed job cuts, demanding they be stopped. The union also presented Lonmin with a memorandum listing grievances.
"We are very disappointed if Lonmin can take a unilateral action on retrenchment (lay offs)," Lesiba Seshoka, NUM's spokesman told Reuters.
"We had hoped they would wait to for the collective effort that we, the unions and the government and other mining companies are trying to do, which is to meet to see ways on how we can save jobs."
Lonmin, whose biggest shareholder is mining group Xstrata (XTA.L: Quote, Profile, Research) with 25 percent, warned on Oct. 30 that sales would be flat during the 2009 fiscal year. It has cut its sales target several times due to operational problems. (Reporting by James Macharia; editing by Karen Foster)