Glencore and Merafe initiate retrenchments

Glencore and Merafe have initiated section 189 talks with unions.

Glencore and Merafe have commenced a consultation process in terms of sections 189 and 189A of the Labour Relations Act No. 66 of 1995, saying consultation with employee representatives and recognised trade unions regarding the process is underway.

Merafe released a stock exchange news service notice on Friday, explaining that the process had been embarked upon as a result of the worsening operating environment across the South African ferrochrome industry, including unsustainable electricity pricing

“Despite significant investments in an attempt to make the operations more competitive, the Parties have continued to come under substantial operational and financial pressures,” said the statement.

While retrenchment processes at the commodity trading and mining company Glencore’s Rustenburg smelter had already been underway since January, the new notice said the operations that would now be affected the Lydenburg Smelter, Wonderkop Smelter, Boshoek Smelter, Lion Smelter, as well as the Eastern and Western Chrome Mines.