BCL lays off another 160 employees
Onalenna Kelebeile | Friday November 30, 2018 14:03
This is contrary to the fact that they were recently informed that there would be no reduction of the employees.
The liquidator Nigel Dixon-Warren confirmed the restructuring exercise saying it long started and is concluding this week with the release of employees, as the mine no longer has positions for them.
“If government provides me with funding to either increase the care and maintenance activities to previous levels or to do other necessary work to make BCL and Tati more attractive, then I will rehire staff as needed,” he said.
The care and maintenance team is reduced from the initial 540 to 380 as the Liquidator seeks to compress the monthly total costs from P25 million a month to P15 million. The exercise also affects Tati Nickel, which now loses eight personnel on site and security. Formal letters of termination were issued to all employees of BCL and Tati at the end of October with the last day of employment being today.
Affected employees will be paid their terminal benefits including leave pay and severance benefits by December 15, 2018 while new contracts for available positions will be issued so that they commence on December 1.
The new contracts will be aligned to the new organogram from BCL and Tati.
He noted that the benefits of the restructuring exercise are that it would ensure that employees are fairly remunerated and their job descriptions aligned to the work being done.
It would also simplify payroll structures and regularise allowances and benefits payable to employees.
Dixon-Warren added that after the restructuring exercise, he will continue with plans to both to find a buyer and prepare for closure.
He said other measures put in place to reduce the care and maintenance cost alongside reduction of personnel include reduction in pumping and ventilation operations which means less power would be used and strict management of overtime amongst others.
Updating on the ongoing evictions from mine houses, Dixon-Warren said he has not received any feedback from government on whether he (government) wishes to extend rental for ex-employees.
“So as from end of January next year I will request all occupants who wish to stay in the houses to pay rent,” he said.
Dixon- Warren said he does not know yet if the task team that government assembled to work with him to find a solution for the mine has already started work.
“I am aware that it has been established and I am awaiting them to engage me,” he said.
He, however, indicated that it is not his recommendation that the mine be closed because it is not in the best interest of the creditors.
Dixon-Warren believes the mine should be maintained on a level of care and maintenance while a buyer is identified and the plans for eventual closure are undertaken.
The plans are currently being developed and while there has been some interest in the mine, the discussions with interested parties are ongoing and it would take some time to determine if there is any potential deal.
About 180 companies are said to have shown interest in buying the mine, but could not satisfy the requirements.
“We are engaging with the two potential buyers, but the biggest problem is proving that BCL can be viable while the parties have stated that better quality information on the resource is required.
I am also engaging with other interested parties who have contacted me,” he said.
Meanwhile, the second creditors meeting for BCL that was scheduled for November 22 has been moved to next year by the Assistant Master of the High Court, Chipo Gaobatwe.
This has compelled the liquidator to issue a report to all creditors providing a comprehensive status update of the estates.
The report is issued as opposed to a formal report to creditors because BCL is yet to convene a formal meeting and Tati remains in provisional liquidation therefore a formal meeting cannot be convened.