By Staff Reporter
As the commodity prices of Platinum Group of Metals (PGM) continues to be depressed, leading producer Zimplats has initiated a voluntary retirement plan for its workers ostensibly to further cut cost and reduce the impact of falling prices of the precious metal.
In a circular to employees, Zimplats Chief Executive Officer Alex Mhembere, highlighted the decision to offer voluntary retrenchment packages has been necessitated by the need to further cut cost amid a projection of the continuation of weak performance of PGM on the international market.
” 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.”
He indicated that the organisation has tried various cost cutting measures but the weak prices mean they have to be on the lookout for further measures to deal. With cost hence the option of voluntary retrenchment.
“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”
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.
Zimbabwe and South Africa produces a combined 81% of global PGM and the current situation hitting hard the two countries. In South Africa, the voluntary retrenchment of workers in the industry was already underway having started in 2023.It was envisaged Zimplats would not follow suit but it seems the continued depressed prices and a bleak outlook in the short to medium term has finally pushed the powers that be at the entity to follow their South African counterpart route of voluntary retrenchment.