THE CAUSE OF PEOPLE LOSING JOBS IN MINES
Moselantja Tsoaela
The cause of losing jobs in mining companies retrenchment and injuries that led to be jobless
Long time mining companies retrench people because of rising costs of electricity, equipment, wages and safety has gone up a lot, by that time price of gold changes on the world market. The costs became higher than the profit mining companies started using machines instead of many workers. Machines do the job faster, which means fewer people are needed, so workers retrenched and most of the easy to reach gold has already been mined, the gold that is left is very deep underground, which makes mining dangerous and expensive. Some old mines are not safe anymore. Accidents and underground fires forced some mines to be closed completely, which led to thousands of job losses. Many families in free state goldfields lost their main source of income.
Most of the time they explain to people, why they are retrenched and VSP. People were surprised by that situation, you will find that 1 person is supporting more than 15 people with that income, even those who got injured, it is of course too much pain for their families because there is no more money to support the family.
If the government and private companies should bring new industries to the goldfields. Industries like factories, agriculture, solar energy plants and tourism. This will create new jobs that are not only about mining. Retrenched miners should be trained for new jobs, colleges and TVET colleges can teach skills like welding, electrical work, plumbing, farming and computer skills, this will help to find work in other sectors. The government can give grants and training to help people start small businesses that can create jobs in the communities. Closed mines can be used for new projects, workers can be employed to clean polluted land, fix old shafts. The government should provide unemployment grants, food parcels and counseling services to families affected by retrenchment while they look for new work.
Mines now use rock drills, loaders and conveyor belts instead of hand labor; one machine can do the job of 20 workers. Mining companies announced that 5000 jobs would be cut due to “automation” in free state mines, the department of mineral resources closed several shafts in Virginia after Rock falls and underground fires. Over2000 workers lost jobs immediately when shafts were shut down in 2019 for being unsafe. Unemployment in the Matjhabeng Municipality rose to over 30% after these retrenchment, most free state mines are now over 3km deep, goldfields mines cost double because they must go deeper to find gold. Even Eskom electricity prices went up by over 300% in 10yrs at the same time, the gold price dropped in 2013 and 2015. Mining companies said they were no longer profitable and had to retrench 10 000+ workers in the goldfields.
When people lose jobs they lose income, many families in the goldfields now struggle to buy food, pay rent, and school fees, local shops and businesses close because they have less money to spend. Job loss causes poverty and stress. Some families break up because of money problems. There is an increase in crime, drug abuse and teenage pregnancy as young people become hopeless, many children had to drop out of school. Retrenched miners feel useless and depressed. Some suffer from mental health problems because mining was the only skill they learned.
