NUMSA Slams Delays in Electricity Tariff Crisis

The National Union of Metalworkers of South Africa (NUMSA) has accused the government of moving too slowly in resolving the electricity tariff crisis that is crippling the ferrochrome industry, warning of possible mass action if urgent steps are not taken.

The criticism comes after 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NUMSA expressed concern that, despite the discussions being described as promising, companies have not withdrawn retrenchment notices issued under Section 189A. Job losses are continuing, with more than 2,000 workers already retrenched in the first wave.

The union blames government delays, pointing out that Cabinet had approved interventions months ago. NUMSA believes that Eskom and the Minister’s inaction have intensified the jobs crisis, creating a “bloodbath” in the sector.

It further highlighted that South African ferrochrome producers pay about 12 US cents per kilowatt hour, while producers in China pay less than 6 cents. This price gap is seen as a major factor driving smelting operations offshore and threatening local jobs.

The union has called for bold measures, including a moratorium on retrenchments, import restrictions on products undermining local producers, and a ban on chrome ore and manganese exports. It argues that such a ban would force international markets to invest in local smelting facilities, thereby creating employment.

NUMSA also restated its long-standing position that Eskom must remain a strategic state-owned entity to provide affordable electricity for both industry and communities. Unless the government acts swiftly, the union has warned that rolling mass action by its members will be unavoidable.