South African Union Opposes 2,400 Job Cuts at Samancor

The National Union of Mineworkers (NUM) in South Africa has vowed to challenge planned job cuts at the Samancor Chrome smelter, which could affect approximately 2,400 employees. This commitment to fight the layoffs comes despite a recent agreement that reduced electricity prices for the company by more than 50%, a measure specifically intended to prevent job losses. The price reduction was announced by state-owned utility Eskom on February 27, following negotiations with Samancor Chrome and a joint venture between Glencore plc and MERAFE RESOURCES LTD. These firms had previously agreed to pause planned retrenchments while seeking relief from power costs, which have reportedly increased tenfold since 2008. High energy expenses have made it difficult for local smelters to remain competitive against producers in China.

While the Glencore-Merafe joint venture has deferred its job cut decisions until March 31, Samancor Chrome has resumed its layoff procedures. The NUM expressed deep disappointment with the company's decision to proceed with retrenchments after the tariff concessions were secured.