Union, Barrick in dispute over retrenchment move

.By Sheilla Sezzy ,The Citizen 

Posted  Friday, November 1  2013 at  00:00

In Summary

“In their report, they (African Barrick Gold) claimed that the amount would be collected after minimising operational cost while $12 million would be realised after retrenching 20 workers,” explained Mr Kajungu.

Mwanza. The union of mine employees (NUMET) has blocked African Barrick Gold (North Mara) from sacking its 20 workers as a reaction to the collapse of gold prices in the global market.

African Barrick Gold intended to terminate 63 workers, before it reduced the number to 20, following the massive fall of gold prices that dropped 30 per cent this month.

NUMET said all reasons given by the company to justify the retrenchment of the workers did not hold water, a situation that forced the union to prevent the move.

NUMET secretary general Nicomedes Kajungu said the union held a meeting with the management of the company which claimed that it spends $110 more due the price fall and had suggested retrenchment as immediate solution to overcome the loss.

Explaining further, the NUMET secretary said African Barrick Gold claimed it would save over $40 million by retrenching its workers.

“In their report, they (African Barrick Gold) claimed that the amount would be collected after minimising operational cost while $12 million would be realised after retrenching 20 workers,” explained Mr Kajungu.

Adding further, Mr Kajungu said 20 workers the company intended to retrench would receive a collective salary of $120,000 annually which did not correspondent with $12 million which the company claimed it would save by sacking them.