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Mining Weekly reported that Evraz Highveld Steel & Vanadium (OTCMKTS:HGVLY) has issued a proposed restructuring notice in terms of Section 189 that would see the steelmaker cut half its workforce following its decision to cease steel production.
Mining Weekly reported that Evraz Highveld Steel & Vanadium (OTCMKTS:HGVLY) has issued a proposed restructuring notice in terms of Section 189 that would see the steelmaker cut half its workforce following its decision to cease steel production.
As quoted in the market news:
The group, which initiated voluntary business rescue proceedings in April, would now enter a 60-day Commission for Conciliation, Mediation and Arbitration-facilitated consultation process with employees and trade unions.
Evraz Highveld planned to restructure to a “curtailed operating mode”, which would allow start-up on a limited basis when market conditions improved and adequate funding was obtained.
Responding to the announcement, trade union Solidarity, which claimed to represent around 400 of Evraz Highveld’s 2 242 employees, said it would participate in the consultation process to mitigate the impact on its members.
The union said it had already sent a letter to South Africa’s largest commercial banks requesting them to “show consideration” for the financial difficulties currently being experienced by Evraz employees. It further called for an urgent industry-wide intervention in the metals industry to avoid the retrenchment of “thousands of workers”.