Threat of retrenchments at Seriti could worsen Mpumalanga’s retrenchment crisis

Solidarity warns that the possible retrenchment of around 780 employees at Seriti Power, together with looming job losses in the metals manufacturing industry, could serve as a major blow to communities in Mpumalanga.

Seriti has notified Solidarity of a comprehensive restructuring process in terms of section 189A of the Labour Relations Act at its head office and several mining operations.

A total of 3,345 employees will initially receive notices, with approximately 1,043 positions potentially being affected before mitigation measures are taken. Seriti anticipates that around 780 employees could ultimately be retrenched.

The company cites, among other reasons for the proposed restructuring, sustained cost pressures, ageing mining assets, declining production, high unit costs and the limited remaining lifespan of certain operations.

“Solidarity understands the harsh operational realities facing older mines. However, we cannot ignore the impact on people and the economy when another 780 jobs could potentially disappear,” says Willie Venter, Deputy General Secretary of Solidarity.

The notice comes shortly after Solidarity also received a retrenchment notice from Sibanye-Stillwater, which could affect approximately 1,100 employees. According to Venter, the two processes point to the growing pressure facing South Africa’s mining sector.

“The danger in Mpumalanga is that the Seriti retrenchments are not taking place in isolation. Transalloys and Ferroglobe are still waiting for relief in the form of lower electricity tariffs, while concerns about possible job losses in the metals manufacturing industry persist.

“When so many major employers are under pressure at the same time, it is not only individual employees who are at risk, but entire towns, families and local businesses,” says Venter.

The proposed date for termination of employment at Seriti is 31 December 2026. According to the company, no final decision has yet been taken, and a CCMA-facilitated consultation process will follow.

During the consultation process, Solidarity will insist that every reasonable alternative be explored to prevent or limit retrenchments, including redeployment, transfers, voluntary severance packages and early retirement.

“A retrenchment date on New Year’s Eve makes the situation even more distressing. Solidarity will do everything within its power to protect jobs and limit the impact on employees and their families as far as possible,” says Venter.