Sunday World reports that over 500 workers at Optimum Colliery are set to retain their jobs as Liberty Coal transitions its mining operations to Liberty Mine Services (LMS), a subsidiary within the Liberty group. The company announced on Friday that LMS will take over as the principal mining contractor, a shift it positions as the crucial next step in a long-term plan to stabilise the mine.

For the workforce, the change comes with a major reassurance: the vast majority of employees will keep their jobs, transferred directly to the new contractor. That stability comes in the form of a Section 197 agreement, a provision in South African labour law that governs the automatic transfer of employees when a business is sold or, as in this case, when a service is insourced.

Liberty Coal said the agreement covered approximately 530 workers currently employed by the outgoing contractors, Salaria and the Veralogix group, and the transition is already underway. According to the company, the first group of employees has been onboarded with LMS, with the remainder set to join the new subsidiary by the end of the month.

For employees, the announcement ends a period of uncertainty. The transfer of their employment is automatic under the Section 197 agreement, meaning their years of service and existing terms and conditions are legally protected. Union representatives had been engaged in the process to ensure a smooth handover.

by Setumo Stone