KIMBERELY – Nkosikhona Lila, an official of the National Union of Metalworkers of South Africa (Numsa), confirmed today, Wednesday 25 February, that Ekapa Minerals Mine in Kimberley went into liquidation as from 12:00 today.
No official statement from the company has been forthcoming. The sudden liquidation of the company, the union’s exclusion from the process, and the significant job losses and community impact, exacerbated by an ongoing rescue operation for trapped workers, are concerning, they said.
“We were informed by an anonymous call about ongoing engagements between the company, the Department of Mineral Resources, and unions regarding the company’s liquidation. We were not officially informed by the company about the liquidation,” Lila said.
Union officials arrived an hour after hearing the news but were locked out of the proceedings, despite being the majority union stakeholder.
Failing to communicate
The company has a history of “bashing” the union and failing to communicate as required by their recognition agreement, he claims.
Numsa anticipated this outcome due to Project 20, which involved initial 10% wage reductions escalating to 20%.
In September last year, 375 workers were laid off without proper pay (apparently only R3 500 was paid from previously deducted funds). A Temporary Employer-Employee Relief Scheme (Ters) application – a Section 189A retrenchment application – was initiated last year but remains unsuccessful.
The company failed to submit audited financial statements to the CCMA, leading the union to believe the company is not in a true financial crisis but rather involved in “maladministration” and internal sharing of funds.
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Prior to the current liquidation, 380 workers were on layoff, and an additional 90 were dismissed for participating in a protected strike, which the company deemed unprotected. Numsa believes the labour court will rule it protected.
The total workforce affected by this liquidation could exceed 1 000, rendering them jobless. This will have a devastating impact on the entire Kimberley community, which relies on the mine.
Lila criticised the mine for extracting minerals without adequately developing Kimberley, comparing its underdeveloped state to major cities like Johannesburg and Cape Town.
Waiting for next course of action
Numsa is awaiting information from their shop stewards who are inside the meeting to determine their next course of action.
The company is accused of withholding employee funds for years, abruptly claiming liquidation without paying current wages, and failing to address worker concerns despite union and labour department involvement.
Lila states he has worked for the company for more than 18 years. During this entire period, the company has been deducting money from workers’ wages.
For the past three years, the company has promised to pay back the deducted monies but has failed to do so. Lila characterises this as the company “borrowing money from the workers”.
He claims the company suddenly announced its impending liquidation within 24 hours, attributing it to a mud rush. The employees believe this claim is false and that the liquidation was long planned, not an overnight development.
Calls for immediate intervention
Employees received pay slips yesterday, on 24 February, but by 12:00 today, no money was deposited into their bank accounts. The company allegedly stated they would not pay for February because they have no money, meaning employees worked the entire month for free.
Employees are demanding answers about where their deducted funds and current wages have gone. They question how a company can suddenly claim to have no money while having operated for so long and made deductions.
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The union and workers have previously contacted labour inspectors and the Department of Labour in Kimberley, but these entities have reportedly done “nothing” to resolve the situation, leading to further frustration.
The lack of wages leaves employees unable to afford basic necessities like transport home, and they express deep concern for their children, highlighting the severe personal impact on them.
Lila criticises the government and Department of Labour for their inaction and calls for immediate intervention to hold the company accountable.
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