Afarak warns of retrenchments at South African subsidiaries

9th December 2019 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

Specialist alloy producer Afarak has said two of its South African subsidiaries – Afarak Mogale and Ilitha Mining – might retrench some employees.

The subsidiaries have issued a notice, in terms of Section 189 of the Labour Relations Act, to start to a 90-day period of consultations with workers and their representatives.

This comes as the subsidiaries are forced into further down-scaling its production as a result of the further deterioration of the chrome ore and ferrochrome market, as well as owing to unfavourable operational conditions in South Africa, which is being exacerbated by “expensive and irregular availability of power”.

Further updates will be given after the consultation period ends.