Anglo is planning more job cuts, says union

TRADE union Solidarity said yesterday that Anglo American was planning to shed more jobs in South Africa.

TRADE union Solidarity said yesterday that Anglo American was planning to shed more jobs in South Africa.

It also accused the company of adopting a short-term survival strategy.

Its subsidiary Anglo Platinum has already dismissed 11931 workers since late in 2008 in a retrenchment process meant to cope with reduced demand for the metal during the downturn.

Solidarity said Angloplat and its shareholder, Anglo American, were now planning more cuts.

"It is rumoured that Anglo American plans to cut personnel at its SA head office by 25 percent," said Gideon du Plessis, Solidarity's deputy general secretary.

"The CEO of Anglo American, Cynthia Carroll, will announce the decision early in August."

Anglo spokesperson Pranill Ramchander said an update on the reduced head count would be provided on Friday.

Solidarity said staff at Angloplat's Joburg head office had been reduced to 583 from 701.

Du Plessis said Solidarity may rethink supporting Anglo's opposition to a proposed merger with Xstrata if it continued to cut jobs.

He was concerned the process was moving to head offices, showing thatmanagement was suffering and showing that the firms were using a short-term survival strategy.

Angloplat said on Monday first-half headline earnings per share plunged 95 percent on a weaker metals price.

In February, Anglo scrapped its 2008 final dividend. It said it would cut 19000 jobs as it posted a 1-percent fall in profit. - Reuters

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