NUMSA slams government’s delay on electricity tariff relief for companies
The National Union of Metalworkers of South Africa (NUMSA) has accused the government of dragging its feet in resolving the electricity tariff crisis that has crippled the ferrochrome industry, warning of possible mass action if urgent steps are not taken.
This follows a meeting between Electricity Minister Kgosientso Ramokgopa, senior Eskom executives, and CEOs from Glencore, Samancor, and Almar Investment, where proposals for a special electricity tariff to reopen mothballed smelters were discussed.
NUMSA spokesperson Phakamile Hlubi-Majola said that while the companies described the talks as “promising,” they have not withdrawn the retrenchment notices issued under Section 189A, and job losses continue.
"Despite having met with the Minister, these companies have not withdrawn the retrenchment notices, and they have announced that they will continue with job cuts. NUMSA condemns this in the strongest terms."
The union blames the government’s 'snail’s pace' response, saying the Cabinet already approved intervention months ago.
NUMSA argues that Eskom and Minister Ramokgopa’s delays have worsened the jobs “bloodbath” in the sector, with more than 2,000 workers already retrenched in the first wave.
Hlubi-Majola questioned the minister’s inaction.
"What is the difficulty that has disabled Minister Ramokgopa and prevented him from being able to take a decision?"
NUMSA compared South Africa’s electricity prices with global competitors, noting that local ferrochrome producers pay around 12 US cents per kilowatt hour, compared to less than 6 cents per kilowatt hour in China.
This, the union says, is pushing smelting operations offshore and costing South African jobs.
The union is demanding bold measures, including a moratorium on retrenchments, import restrictions on products undermining local producers, and a ban on chrome ore and manganese exports to encourage beneficiation within South Africa.
"There is nothing stopping the South African government from banning the exportation of chrome ore and manganese. That will force markets with an interest in our minerals to set up smelters here and create jobs," Hlubi-Majola said.
NUMSA reiterated its long-standing position that Eskom must remain a strategic state-owned entity to provide affordable electricity for both industry and communities.
Hlubi-Majola warned that unless the government acts swiftly, NUMSA will be unable to stop its members from embarking on rolling mass action.
"We are making a clarion call to Minister Ramokgopa to move with speed in making this necessary announcement. Failing which, we will not be in a position to stop our members from embarking on rolling mass action to protest against this unnecessary delay from government."
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