POLOKWANE – Limpopo’s ASA Metals and Dilokong Chrome Mine is set to retrench 750 workers as part of restructuring plans, a move that has been slammed by a labour union.
“The company is forced into [a] restructuring process which will cause significant reduction in its operation including the number of employees,” said ASA Metals’ human resource manager Denzil Blignaut.
In a letter to the National Union of Mineworkers (NUM), ASA Metals said that a three-day unprotected strike in October last year by members of the union had resulted in a 15% production loss.
Blignaut said that the company had suspended operations in October and was currently running maintenance on its furnace.
Additional factors given for the planned retrenchment was the company’s reported deteriorating financial position, community unrest, below-budget performance and the declining price of iron ore.
“Regrettably, there is a new sense of urgency in [this] regard due to [the] financial position the company is finding itself in,” the letter read.
“This is mainly due to the continuous drop in both ore and ferrochrome price.”
If the retrenchment plan went ahead unchanged, only 317 workers would be retained while the potential for additional job losses with regards to contractors remained.
Blignaut said ASA Metals acknowledged that the process was traumatic for its employees.
Meanwhile, NUM leaders have described the plan as a plot by ASA Metals to close down underground operations.
“The company, in fact, wants to sell their underground operation and remain with a smelter,” charged NUM regional secretary Philip Mankge on Tuesday.
Mankge alleged that ASA Metals had “locked out” the union and its members, closing negotiations on the matter.
“The company does not want to negotiate with us and we condemn that behaviour,” he said.
NUM regional chairperson Musa Magagula also weighed in during an address to hundreds of workers at the mine.
He said contrary to ASA Metals’ reasoning, the production decline was the result of poor management.
Magagula addded that shareholders should be informed of management’s failure to lead the company towards maximum capabilities.
“The company is capable of producing more,” he said. “We know the problem is arrogant management.”
Workers said they found it shocking that they were being blamed for the three-day strike and subsequent production losses.
On October 23 253 workers staged an underground sit-in. Their grievances included the alleged purging of union leaders from the mine.
The workers said they hoped their union would be able to find relief in court.
Philp Phiri, one of the affected workers, told the African News Agency (ANA) that he feared debtors would repossess the property he had bought on credit.
“We just hope that union will find solution for us,” he said.
Along with house payments, Phiri said he was now unable to pay for his children’s school uniforms and fees.