JOHANNESBURG (miningweekly.com) – The low chrome ore price has forced Samancor Chrome to consider job cuts, which could affect as many as 280 employees, Solidarity said on Friday.
“Despite the implementation of several measures at all our business units, the . . . decrease of the ferrochrome market price has forced us to issue a Section 189 notice today to all the recognised unions representing staff across all operations and corporate offices,” the company said in an earlier statement.
It had previously sought to cut costs through the reduction of overtime, placing a moratorium on recruitment and the discontinuance of contractors, to no avail.
This would affect all three of Samancor Chrome’s smelters in Emalahleni (Witbank), Middelburg and Steelpoort.
Solidarity metals industry deputy general secretary Marius Croucamp said that, although the union understood the many challenges facing the company, and the consequent impact this has on its profitability, it was “extremely concerned” about the possibility of job losses.
“It remains our first priority as a trade union to protect our members’ jobs and at consultations with the employer we’ll put forward proposals for all alternatives other than retrenchments to find a solution to the challenges.
The embattled company said it would start the consultation process with unions shortly, stressing that all options would be explored to mitigate the current situation.
Samancor employed 6 221 employees.