Steel production. Picture: BLOOMBERG
Picture: BLOOMBERG

THE retrenchment of workers at Glencore Optimum mine in Middelburg and Evraz Highveld Steel in Witbank would be catastrophic for the provincial and national economies‚ the Congress of South African Trade Unions (Cosatu) in Mpumalanga said on Tuesday.

The trade federation said it was "deeply concerned about the envisaged closure" of Optimum mine and downscaling at Evraz Highveld Steel.

The two companies combined employ more than 4‚000 people and are the pillars of the economy in the Nkangala district municipality‚ and by extension of Mpumalanga.

Evraz Highveld Steel has already issued a section 189 notice to retrench 50% of its employees due to capital constraints and reduced domestic demand for steel.

Glencore Optimum has also issued a section 189 notice with a view to retrenching workers due to market and financial constraints.

"The unemployment rate in Mpumalanga presently stands at more than 28% and at 44.4% in terms of the expanded definition of unemployment.

"In September 2014‚ Cosatu engaged the provincial department of finance‚ economic development and tourism to intervene in trying to save the jobs bloodbath, but that process has not yet yielded any positive results."

Cosatu said it would ask the Office of the Premier to intervene before August 10, and attempt to convince its central executive committee to pass a declaration on the job losses at a special meeting to be held on August 13-14.

The trade federation would also stage a sit-in at the Glencore Optimum mine on September 10‚ and engage the African National Congress leadership in the province to convene a provincial economic summit as "a matter of extreme urgency".

RDM News Wire