Assmang closure threatens over 600 livelihoods

THE government must intervene to prevent the collapse of local enterprises that provide much-needed jobs, this destroys the demand of referred employees, said National African Fed-erated Chamber of Commerce (Nafcoc) president Albert Mosena.

- BONGANI BANS

Mosena was reacting to the news that more than 600 workers of Ass-mang Chrome in Cato Ridge out-side Pietermaritzburg would be left unemployed as the company was in the process of shutting down.

The company, which processes manganese and is a joint venture between Assore, Moti, Sharpeville and Billionaire Patrice Motsepe’s African Rainbow Minerals (ARM), was formed in 1935.

The workers, most of whom live in Cato Ridge and KwaXimba in the outer western region of eThekwini, have been served with retrenchment letters, said Maloka.

Assmang senior communication and branding manager, Betty Molekoa, said the company has been facing an unsustainable increase of operational costs of up to 30% since 2008, which became uncontrollable.

“A closure of the plant would potentially affect approximately 310 permanent and 290 contract workers,” said Maloka.

She explained that Section 189 of the Labour Relations Act which entails extensive consultation process, monitored by the Commission for Conciliation, Mediation and Arbitration (CCMA), is under way.

“Assmang is committed to engaging with affected employees and community leaders and is working closely with relevant stakeholders and authorities to explore ways to mini-mise the potential social impact of potential closure.

“Despite extensive efforts to retain operations, the plant has been unable to overcome the mounting financial losses caused by depressed global man-ganese alloy prices and rising produc-tion costs,” said Maloka.

Speaking to reporters on the side-lines of the 46th anniversary of Nafcoc in Durban this week, Mosena painted the pains of losing jobs by pointing out that could be resolved if government intervene sooner rather than later.