Impala Platinum Holdings’ Zimbabwean unit, Zimplats, is taking proactive steps to mitigate the impact of anaemic metal prices. The company has initiated voluntary job cuts among its employees as a cost-cutting measure.
Zimplats is offering its employees a minimum of three months’ pay in redundancy packages. Employees have until March 22 to submit their applications for voluntary redundancy.
As Zimbabwe’s largest producer of platinum group metals (PGMs), Zimplats is facing economic challenges due to the anticipated continuation of weak metal prices over the next 12 to 18 months.
In a staff circular, dated March 18, issued by Zimplats Chief Executive Officer Alex Mhembere, the company said the voluntary redundancy packages are a preemptive measure to avoid compulsory layoffs. Reads the circular:
We have been communicating through our usual platforms about the difficult operating environment that we face. PGM prices remain very weak and this situation is projected to last for the next 12-18 months.
We have been working with all teams across the board in implementing various cost containment and cash preservation programmes.
I wish to thank all team members for diligently rallying behind our efforts in this regard. I am confident that as a team we will successfully navigate through the headwinds.
While our cost containment and cash preservation programmes yield expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken.
One of the measures that the company will implement is a voluntary retrenchment exercise for all employees wishing to be considered. If successful, this will mitigate the need for a compulsory retrenchment.
Those wishing to be considered for the voluntary retrenchment package should approach the respective Divisional HR Department for the application form beginning Tuesday 19 March 2024. The completed forms must be submitted to the respective HR Department by 22 March 2024.
It is important to point out at the outset that management reserves the right to approve or decline any application based on business requirements and this is not subject to an appeal process.
The voluntary retrenchment package will be as follows:
- Two week’s pay for every completed year of service
- One-month notice pay
- Minimum guaranteed package of three months for employees whose retrenchment package is less than three months.
- All statutory requirements will be paid out together with the package.
The HR Team will provide full details of the process and packages.
Approved applicants will receive a voluntary retrenchment agreement detailing the terms and conditions of the retrenchment including all payments due.
Employees who proceed on voluntary retrenchment will be considered good leavers and will be eligible for re-employment in future whenever suitable new opportunities arise.
Meanwhile, other PGM mining companies, such as Impala Platinum (Implats), have also faced similar challenges.
Implats and its peers have already cut thousands of jobs in neighbouring South Africa, which accounts for about 70% of global platinum output.
The recent slump in metal prices has significantly impacted their profits.
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