KUMBA Iron Ore has issued retrenchment notices that could affect 1 600 employees, despite bumper profits in the year to the end of December, trade union Solidarity said on Friday.
Solidarity’s deputy general secretary for mining, agriculture and chemical industry, Riaan Visser, said the process could result in 653 job losses.
Visser said Kumba’s reasons for the retrenchments had no grounds given the company’s strong financial performance in 2020.
“It is unfair and simply insensitive of Kumba to punish workers amid a pandemic and an excellent financial performance with increased turnover, profits and dividend declared,” Visser said.
Last month, Kumba, a subsidiary of Anglo American, delivered record earnings and dividends during the 12 months to the end of December on the back of 19 percent higher iron ore prices to $115 (about R1 765) a ton.
On Friday, Kumba, which owns the Sishen and Kolomela mines in the Northern Cape, confirmed that the company had initiated a targeted consultation process with the employees who might be affected.
