NUM: Anglo's restructuring move is unacceptable & insensitive
Anglo American's CEO announced the company’s restructuring plan, which includes reducing its workforce.
JOHANNESBURG - The National Union for Mineworkers (NUM) has expressed shock at what it says is Anglo American's decision to announce restructuring plans without consulting the union.
The plan will reduce the mining giant's workforce from 130,000 to 50,000 by this time next year and the sale of its phosphate and niobium divisions.
Anglo American CEO Mark Cutifani spoke at the company's investment day in London yesterday.
He also announced a zero dividend for shareholders.
NUM spokesperson Livhuwani Mammburu says they're shocked at the announcement by Anglo American.
"The decision by Anglo American to make an announcement in public, before they could consult with their employees is unacceptable and insensitive. That's why we were shocked."
But United Association of South Africa's Franz Stehring says Cutifani made the right decision by withholding dividends.
"You cannot pay dividends, and how do you explain that to your employees that [you] are sitting with low commodity prices? We are retrenching yet we are paying dividends."
While Cutifani says the company will not keep any non-profitable assets, but says decisions on whether to sell will be announced in February next year.