ZIMPLATS offers voluntary retrenchment packages
To address ongoing challenges created by plummeting mineral prices, Zimbabwe’s biggest Mine ZIMPLATS is offering a voluntary retrenchment package for all employees wishing to be considered.
In a statement seen by Mining Zimbabwe, ZIMPLATS Chief Executive Officer (CEO) Mr Alex Mhembere said the platinum miner is taking proactive measures to ensure sustainability and navigate through the current headwinds.
“We have been communicating through our usual platforms about the difficult operating environment that we face. PGM prices remain very weak and this situation is projected to last for the next 12-18 months. We have been working with all teams across the board in implementing various cost containment and cash preservation programmes. I wish to thank all team members for diligently rallying behind our efforts in this regard. I am confident that as a team we will successfully navigate through the headwinds,” the statement read in part.
“While our cost containment and cash preservation programmes yield expected results, the company’s situation remains difficult and therefore additional measures still need to be undertaken,” the statement continued.
Acknowledging the severity of the situation, Mhembere said the company has decided to introduce a voluntary retrenchment exercise for all employees interested in participating. This initiative aims to mitigate the need for compulsory retrenchment and offers employees the opportunity to make a voluntary exit under favourable terms.
“One of the measures that the company will implement is a voluntary retrenchment exercise for all employees wishing to be considered. If successful, this will mitigate the need for a compulsory retrenchment. Those wishing to be considered for the voluntary retrenchment package should approach the respective Divisional HR Department for the application form beginning Tuesday 19 March 2024. The completed forms must be submitted to the respective HR Department by 22 March 2024,” the statement continued.
The Platinum miner said the decision to undergo voluntary retrenchment is entirely optional and individuals wishing to be considered must submit their application forms to the respective Divisional HR Department starting from Tuesday, 19th March 2024, with a deadline of 22nd March 2024 for submission.
“It is important to point out at the outset that management reserves the right to approve or decline any application based on business requirements and this is not subject to an appeal process.
The voluntary retrenchment package will be as follows:
- Two week’s pay for every completed year of service
- One-month notice pay
- Minimum guaranteed package of three months for employees whose retrenchment package is less than three months.
- All statutory requirements will be paid out together with the package.
Mhembere said the HR Team will facilitate the process and provide comprehensive details regarding the application procedure and the packages offered. He said Successful applicants will receive a voluntary retrenchment agreement outlining the terms and conditions, including all entitlements and payments due.
Accordingly, the Platinum miner said employees who opt for voluntary retrenchment will be regarded as “good leavers” and will remain eligible for re-employment in the future should suitable opportunities arise, or the situation normalises.
The ‘basket price’ of platinum-group metals sank by 38% last year, leaving “roughly half of global PGM mine supply operating at a loss.