Union Battles Job Cuts Amid Ferrochrome Smelter Crisis

South Africa's National Union of Mineworkers is fighting proposed job cuts at ferrochrome producer Samancor, despite a significant reduction in electricity costs aimed at preventing layoffs. The cuts could affect 2,400 workers while the smelting industry struggles with high electricity costs and competition from China.

South Africa's National Union of Mineworkers has pledged to combat planned job reductions at Samancor, a major ferrochrome smelter threatened by a challenging economic climate. Despite slashing more than 50% off electricity prices to stave off job losses, 2,400 employees face uncertain futures.

Last month, Eskom, the state power utility, reduced electricity tariffs for Samancor and the Glencore-Merafe joint venture after both companies agreed to delay layoff plans. Since 2008, these firms have seen their energy costs soar tenfold. Samancor's decision to proceed with layoffs, despite the tariff cut, has drawn criticism from the union.

The union remains committed to saving jobs, while Samancor plans consultations with worker representatives. The ferrochrome industry, critical to steel production, faces long-term viability threats due to current cost conditions. South Africa, once a leader in ferrochrome production, has seen its position usurped by China.

(With inputs from agencies.)