Evraz Highveld Looks to Cut Half its Workforce

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”.

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