Labour urges for permanent solution to avert mass layoffs after Eskom-ferrochrome deal

THE Congress of South African Trade Unions (Cosatu) has welcomed the agreement between Eskom and major ferrochrome producers Samancor Chrome and the Glencore-Merafe Chrome Venture to halt planned retrenchments that threatened more than 7 000 jobs from December.

- BANELE GININDZA

The federation, however, says the temporary reprieve must pave the way for a permanent, affordable electricity solution to safeguard the future of South Africa's ferrochrome sector.

The memorandum of understanding (MOU) signed by Eskom, the producers and government establishes a joint multi-stakeholder task team to develop a long-term intervention to support industrial competitiveness without shifting additional costs onto other electricity users.

The parties aim to present a proposed solution within three months.

Cosatu parliamentary coordinator, Matthew Parks, said on Tuesday that the federation “warmly welcomes this job-saving agreement,’ but emphasised that the companies must honour their commitment to suspend retrenchment processes.

"We cannot afford to see a single worker added to the already dangerously high unemployment rate of 42.4%," Parks said.

"We expect all parties to offer solutions and make compromises to ensure that the jobs of these workers are saved and the sustainability of this strategic industry as well as Eskom are ensured."

The development comes as the National Union of Metalworkers of South Africa (Numsa) intensifies pressure on government, calling for nationalisation of the smelter industry to prevent further job losses.