ANC lekgotla calls on mining companies to review their retrenchment plans

The African National Congress’ mid-year lekgotla held at the weekend‚ had noted that the economy was growing at a disappointingly low rate‚ while there had also been a worrying increase in the number of retrenchments in key sectors‚ while energy security continued to be a constraint‚ ANC secretary general Gwede Mantashe said on Monday.

The lekgotla‚ held at the St Georges‚ Hotel‚ Tshwane from July 24 to 26‚ agreed that manufacturing was a key sector for “re-industrialisation at the heart of our economy”.

“We must be able to quantify the impact of the investments government is making in this regard.”

He said the lekgotla had been convened to assess the progress made in improving the quality of life of South Africans‚ and that members attending the legotla had agreed that building and strengthening the capacity of the state needed “constant and focused attention‚ including the identification of young talent to take forward our aspirations”.

“Should we fail to build this capacity‚ we will continue to complain about lack of implementation.

“South Africa remains a mineral driven economy‚ based on amongst others industrialisation through beneficiation and foreign earnings.”

Mantashe said the lekgotla had noted the decline in the commodity prices across the sector.

“While we appreciate that the price of minerals is inherently cyclical‚ we also noted that the decline of the demand for steel in the Chinese market and the dumping of cheap steel in SA‚ is impacting negatively on our economy.”

The lekgotla‚ however‚ “called for caution in the manner in which mining companies react to these challenges. It is concerning that their response has been the cutting of jobs; which instead of resolving the challenges is deepening the crisis.

“Those companies that have already announced possible retrenchments are called upon to review their plans and avoid massive job losses as such would lead us further into crisis.”

The lekgotla had also called for more effective use of industrial development zones. “These should be the drivers for the creation of black industrialists.

“The state owned companies (SOCs) remain critical economic levers of the developmental state. They must be optimally used to improve economic infrastructure and increase economic growth. The state must be in a position to initiate and give life to catalytic sectors. In this regard‚ together with private sector investment‚ SOCs must shape and drive economic growth.’

Discussion on the minimum wage “must be speedily concluded and the contestation of space between higher earnings and the absorption of the majority of people into employment must be discussed and solutions should be found’.

He said it the lekgotla had also reaffirmed the fact that agriculture had the potential to make a massive contribution to economic growth.

“Additional resources must be allocated to this area in order to allow it to fulfill its potential role. Government must focus on both commercial and subsistence farming as the latter is also critical to food security.”

He said the lekgotla had also received an assurance that Medupi's Unit 6 would be fully commissioned in August 2015‚ and the lekgotla had “expressed a desire that this date will not be shifted again”.

RDM News Wire.