Sibanye to Start Talks With Union on Cost Cuts at Cooke 4 Shaft

Sibanye Gold Ltd. will probably start talks with labor unions tomorrow that may include cutting jobs at its Cooke 4 shaft.

The company is entering the so-called Section 189 process, which can be a first step toward job cuts under the Labour Relations Act, Franz Stehring, head of mining at Johannesburg-based United Association of South Africa union, said today by phone. About 2,500 people work at the shaft, James Wellsted, a spokesman for Westonaria, South Africa-based Sibanye, said by mobile phone text message. He declined to comment further.

“The shaft is not making any money, but it is too early to talk about job cuts,” Stehring said.

Sibanye Gold bought the Cooke mines in August last year from Gold One International Ltd. Gold traded at an average of $1,290 an ounce in the first half of this year, 15 percent lower than a year earlier, making operations less profitable for mining companies.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE