Restructuring at Glencore Rustenburg
Johannesburg - Glencore Alloys (the company) and Merafe Resources have commenced a Section 189A of the Labour Relations Act (“LRA”) process and confirm that written notice has been given to its employees at the Rustenburg Smelter which is a Joint Venture.
This decision is a result of deteriorating operating and market conditions across the South African Ferrochrome industry, including unsustainable electricity tariffs and interruptions, cross-subsidies and real cost inflation.
These factors have also led to the displacement of significant volumes of Ferrochrome production to lower-cost competitors overseas.
Despite significant investment to make the operation more competitive, the Rustenburg Smelter has suffered material financial losses which are expected to continue for the foreseeable future.
Before the commencement of the Section 189A process, the company engaged in extensive consultations with stakeholders, including employee representatives, local and regional government. This consultation process will continue to attempt to secure the future of the operation.
As part of the process outlined in the LRA, Glencore Alloys will apply for the appointment of a facilitator from The Commission for Conciliation, Mediation and Arbitration (CCMA) to guide and assist the parties to participate meaningfully in the consultation process.
The company views its engagement with the employee representatives and recognised Trade Unions of Rustenburg Smelter as an ongoing process and all alternatives will be considered.
Further updates will be issued as appropriate.
Glencor press release, 17 January 2020
Notice in terms of Section 189A of the LRA: Rustenburg Smelter NW Province South Africa (“Rustenburg Smelter”)
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