Home Mining Zimplats Implements Voluntary Retrenchment Amidst Weak PGM Prices

Zimplats Implements Voluntary Retrenchment Amidst Weak PGM Prices

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In response to ongoing challenges posed by persistently weak platinum group metals (PGM) prices, Zimplats, a leading mining company, has announced the initiation of a voluntary retrenchment exercise for its employees.

Zimplats’ Chief Executive Officer, Alex Mhembere, communicated the decision in a staff bulletin dated March 18, 2024, highlighting the company’s ongoing efforts to navigate the challenging operating environment. The CEO acknowledged the diligent efforts of the workforce in supporting cost containment and cash preservation initiatives but emphasized the necessity for additional measures due to the enduring difficulties faced by the company.

The voluntary retrenchment exercise, aimed at mitigating the need for compulsory retrenchments, is set to commence on March 19, 2024.

Employees interested in participating are instructed to approach their respective Divisional HR Departments for application forms, with submissions required by March 22, 2024.

The retrenchment package offered by Zimplats includes two weeks’ pay for each completed year of service, one-month notice pay, and a minimum guaranteed package of three months for those whose retrenchment benefits fall short of this duration.

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Additionally, all statutory requirements will be fulfilled alongside the package.

In the staff bulletin Mhembere indicated that management retains the discretion to approve or reject applications based on business necessities, with decisions being final and non-appealable. Approved applicants will receive a comprehensive voluntary retrenchment agreement outlining the terms and conditions, including all entitlements.

The CEO said employees opting for voluntary retrenchment will be considered ‘good leavers’ and remain eligible for re-employment.

The decision by Zimplats to implement a voluntary retrenchment exercise underscores the gravity of the economic challenges facing the mining industry in Zimbabwe.

Zimplats is a leading platinum mining company in Zimbabwe. They specialize in extracting platinum group metals such as platinum, palladium, rhodium, iridium, ruthenium, and osmium from the Great Dyke in Zimbabwe. The company employs approximately 3,732 individuals.

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