The National Union of Mineworkers (NUM) says it is against potential job cuts in ferrochrome operations run by mining giants Glencore and Samancor Chrome in the country.
“These proposed job cuts are attributed to economic pressures, notably high electricity tariffs and a decline in ferrochrome prices,” said NUM chief negotiator Lefty Mashego.
“The NUM finds this action to be premature and disingenuous. The union, along with government and key stakeholders, including Eskom, is currently in active negotiations to secure a viable solution to the electricity cost challenges.
“The threat of retrenchment appears to be a coercive tactic designed to gain an advantage in these ongoing talks.”
Mashego said NUM would not tolerate its members being used as “bargaining tools”.
Business Day has reported that high energy costs were damaging SA’s mining industry, which accounts for about 8% of GDP.
SA’s mining industry shed almost 7,000 jobs in the second quarter of 2024, reflecting a wave of restructurings and retrenchments as falling prices of platinum group metals, rising input costs and logistical challenges continued to weigh on mining companies.
Despite decline, the mining industry still accounted for 474,876 jobs in 2024. Beyond the contribution to employment, the industry generated R43.6bn in corporate taxes to the fiscus, as well as R21.5bn in VAT and R16bn in royalties in 2024. Employees across the sector provided R36.1bn in PAYE to the SA Revenue Service.
“We demand that Glencore and Samancor cease using the threat of job losses as leverage. All stakeholders must focus on finding a collaborative and sustainable solution for the industry,” said Mashego.
If Glencore and Samancor were no longer able to operate their operations, “we call on them to surrender their mining and operating licences”.
“The jobs at the 10 smelters, including Glencore’s Boshoek, Wonderkop, and Lion facilities, and Samancor’s Ferrometals, Middelburg Ferrochrome, Tubatse Ferrochrome, Tubatse Alloys, Dikwena, and TC Smelter, are vital to the economic stability of the communities that depend on them.”
Speaking to Business Day, Mashego said: “Glencore’s CEO [Gary Nagle] has verbally communicated to the workers that the company is contemplating retrenchments and Samancor has not communicated any contemplation except that its CEO [Desmond McManus] has withdrawn/suspended a number of benefits for workers such as bonuses, leave encashment, overtime and shift allowances.
“The company equally has closed/suspended about four furnaces at MFC, Tubatse and so on. As a result of them being switched off, workers must take unpaid leave and work day shift, [with] some doing gardening and cleaning.
“The main causes of these are that the ferrochrome global prices are [very low and] our domestic electricity tariffs are very high.”
Samancor did not immediately respond to a request for comment.
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