ASA Metals cuts workforce
- Published on 14 Jan 2016
- HR Pulse News Desk
ANA reports that 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 the National Union of Mineworkers (NUM).
“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. If the retrenchment plan goes ahead unchanged, only 317 workers would be retained while there would still be potential for additional job losses in respect of contractors. In a letter to the NUM, the company stated that a three-day unprotected strike in October last year by union members 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 deteriorating financial position, community unrest, below-budget performance and the declining price of iron ore. “The company, in fact, wants to sell their underground operation and remain with a smelter,” charged NUM regional secretary Philip Mankge on Tuesday.
Source: SA Labour News
