Zimplats elaborates on voluntary severence initiative
In response to a downturn in commodity prices, Zimplats, the country’s largest platinum group metal (PGM) producer, has initiated voluntary retrenchment measures to minimize the impact of spending cuts on its growth strategy, including the US$1.8 billion expansion program.
According to a statement by Head of Corporate Affairs, Mrs. Busi Chindove, Zimplats aims to ensure the integrity of its production capacity and infrastructure, while maintaining social and environmental responsibility and compliance.
“We also seek to minimize the impact of spending cuts on our growth strategy, which includes a US$1.8 billion expansion program. The program comprises various stages of execution, with targeted interventions including operational efficiency improvements, operating cost realization, capital prioritization, and labour cost optimization.
“Our immediate focus is on cost reduction, improved productivity, and ensuring safe, consistent, and sustainable volumes.
“Our past successes, notably in 2008 and 2014, are testament to the flexibility and resilience of our workforce. We must leverage the hard work and investments made in the recent past to secure a better future for the company and its stakeholders,” she said.
Chindove also emphasized the importance of ensuring that those who lose their jobs do so voluntarily and have sustainable post-employment prospects. Zimplats recognizes that securing the business to sustain jobs is critical. She stated that employees are instrumental in creating value, but due to persistently low PGM prices, restructuring to ensure business sustainability is imperative.
“Cash interventions must align with prevailing metal prices and deliver the strategic objective of achieving positive cash flow.
“Regrettably, labour optimization initiatives must be implemented urgently to secure the business and preserve the majority of jobs within the company. The latest offer for voluntary retrenchment is part of that response.
“We will ensure that the process is advanced with due care and sensitivity,” Mrs Chindove concluded.