London, England — 01 March 2013 – Leading platinum producer Lonmin plc says it has made significant progress in its review of the company’s operating model and management structure, and is now in consultation with its unions (AMCU, NUM, Solidarity and UASA) on a proposed new operating structure.
The review of the operating model forms part of the Lonmin renewal plan which was announced at the end of October 2012 and has been undertaken as part of a strategy aimed at achieving a sustainable business in an environment characterised by weak global market conditions and high input costs.
The “ramp-up” element of the renewal plan delivered excellent results in the first Quarter, as announced on 31 January 2013, and is progressing ahead of schedule.
The company’s renewal plan update reveals that approximately 150 positions are likely to be affected initially, all of which are expected to be in the management levels. All parties are mindful of the need to preserve jobs wherever possible and to manage the process with sensitivity, it adds.
In view of this the company is engaging with its affected unionised employees through their registered trade unions, as well as with non-unionised employees, as required by South African labour legislation, to consult on ways to minimise the impact of the restructuring and redundancies that may flow from it.
The company also proposes to engage the services of experts in the relevant fields to assist affected employees by providing counselling and financial planning advice, and access to employment advisors.
Lonmin currently employs approximately 28,000 employees
Source: Lonmin plc. For more information, click here.