Local Business

Bayside forced retrenchments slashed

Sale option for cast house on the cards.

THE high uptake of voluntary severance packages at BHP Billiton’s Bayside Aluminium has significantly minimised forced retrenchments, if any, at the ageing smelter.

It is believed more than 300 employees have opted for voluntary and early retirement packages, which become effective at the end of this month.

In January, the mining conglomerate announced the shutdown of Bayside’s remaining potlines effectively ending aluminium production at the smelter and leaving hundreds of jobs hanging in the balance.

However, Head of External Affairs at BHP Billiton Aluminium SA (ASA), Aroon Patel told the Zululand Observer on Wednesday that there was a possibility there would be no forced retrenchments as a result of the ‘very good uptake of packages’.

‘Some Bayside employees will be offered early retirement and some absorbed into the Hillside operation. The applications for voluntary and early retirement packages will be reviewed and finalised in the next two weeks. There are also transition plans in place where certain individuals will be asked to stay on longer to ensure skills transfer and a smooth transition,’ said Patel.

Meanwhile, the decommissioning of Bayside has commenced and will be concluded by the end of June.

‘The transfer of liquid metal from Hillside to the value-added product cast house at Bayside begins next week, in line with ensuring a continued support of the downstream industry.

‘We have been in constant contact with local traffic authorities to ensure the transfer is done safely. Safety of everyone remains our priority and we will continue to offer support in this tough period. This includes psychological and financial advice support,’ Patel said.

Sale

The possible sale of the cast house as an entity is also on the cards. Patel said following the request for expression of interests from potential buyers, the company was now at the end of sale assessment process.

‘We are about to receive the final bids and are testing the viability of the sale. In about a month’s time, we will know whether the sale of the cast house is viable and if not, we will explore our remaining options, which is aligned to the vision of sustainably providing metal to the downstream industry,’ said Patel.

The ongoing discussions with stakeholders, and the consultative process with unions and non-union representative bodies from the beginning of the year, have been described as both productive and meaningful.

‘Various options were jointly considered. We are very grateful for the responsible and professional manner that everyone has continued to display making us quite positive of the future.’

 

Read more Smelter on a knife edge.

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