JOHANNESBURG (miningweekly.com) – Ferrochrome producer Samancor Chrome on Thursday launched its Ndizani Workers Employee Share Ownership Programme (Esop) trust, whereby about R2-billion worth of shares, would be sold to the trust for R400-million.
The scheme would receive 9% of its shares to its employees in the A to C-upper employment bands. The trust would purchase the shares with a five-year loan from Kermas, which would be repaid at a reduced interest rate of 4,5%.
After the first five years of the scheme, eligible employees would receive a yearly allocation of units for each full year of service from the trust. This would determine their prorate portion of the share value created in the trust. A capital payment would be made to employees after the first five years of the trust for each full year of service.
“The trust, which has a thirty-year lifespan will be managed by 15 trustees, comprising representatives of the trade unions and the company, as well as independent trustees. Trustee representation is heavily weighted towards labour, which was also significantly involved in designing the structure and implementation of the trust. This will ensure that employees’ interests are prioritised,” said Samancor CEO Jurgen Schalamon.
The trust was a broad-based employee empowerment scheme that will benefit all Samancor Chrome bargaining unit employees.
“The formation of the Samancor Ndizani Workers Esop trust represents our commitment to serving our employees by not only redressing historical inequalities, but also creating a real opportunity for our people to share in the success of the company,” concluded Schalamon.
Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
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