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May 10th, 2013 
Peter Nolan
TOP global platinum producer Anglo American Platinum has unveiled revised plans to cut 6000 jobs at its South African operations, risking renewed labour unrest.
Amid fierce government and union pressure, the company backed away from initial proposals to cut up to 14,000 jobs but unveiled cost savings worth $US420 million ($A418.1 million) a year.
“(The) principle issue is to turn our loss-making operations to profitability,” said Amplats CEO Chris Griffith, denying he had put politics before business principles.
Amplats, which accounts for almost 40 per cent of global platinum production, reported a more than 140 per cent drop in headline earnings in 2012.
Profits were obliterated by a higher wage bill and increased electricity costs. At the same time, expensive deeper mines yielded lower grade metals.
Amplats said most of the job cuts would come in the northern city of Rustenburg, a crucible of deadly labour violence last year.
Unions have vowed to fight any job cuts and fresh work stoppages are likely.
“It is a spit in the face to the workers and the people of South Africa,” said union umbrella group, COSATU.
After reacting furiously to Amplats initial shock announcement, the South African government welcomed Friday’s revision as “quite an achievement.”
“If government and business and labour sit down together, you can find better solutions,” said finance minister Pravin Gordhan.
“Hopefully government and business can still work together to see how we look after those 6,000 people and ensure that there is a clear social plan to support them.”
Friday’s announcement of vastly reduced job losses will offer little succour to workers struggling with crippling unemployment.
At least one in four South African workers is currently without a job and growth is anaemic compared to the rest of Africa, which is expected to grow at more than five per cent this year.
And larger retrenchments are likely to have been delayed rather than abandoned.
Amplats also has operations in Zimbabwe and Brazil. Its parent company Anglo American is one of the world’s largest mining companies.
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