Amplats restructuring to impact over 3,700 South African jobs

Anglo American Platinum has proposed a restructuring of its business that may affect about 4,300 jobs across its South African operations. 

The so-called section 189A process involves a consultation period with trade unions and affected employees and will be facilitated by the Commission for Conciliation, Mediation and Arbitration, the Johannesburg-based company said in a statement Monday.

Only when the consultation process is concluded will the final number of affected jobs be known.

In parallel, Amplats, as the company is known, has initiated a contractor-vendor review process that could affect 620 service providers.

The move comes amid a 35% decline in average platinum group metal prices last year, which resulted in a 71% year-on-year fall in headline share earnings for the 12 months ended December to R53.30 per share, announced today.

Amplats’ full-year results are lower than the consensus of R60.15 per share.

Amplats, owned 79% by Anglo American, said it had issued a Section 189 notice in terms of South Africa’s Labour Relations Act detailing a possible impact on 3,700 full-time employees and 620 contractors across the group’s production base.

The potential restructuring affects 17% of Amplats’ total 22,000 full-time employees.

In December, Amplats announced plans to save R10 billion this year, including R5 billion in operating costs.

“We responded rapidly throughout 2023 and are working hard to reposition the business to address both the global and local challenges that currently face the PGM industry,” said Craig Miller, CEO of Amplats.

“It is clear to us, however, that the extensive range of actions we have already taken do not go far enough.”