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Media Statement 24 October 2023
NUM is concerned about the plight of workers at the country’s biggest foundry group, Cast Products South Africa
The National Union of Mineworkers (NUM ) is highly concerned about the plight of workers at the foundry group, CastProducts South Africa, after the company was placed under a questionable business rescue in February 2022 by the board.
As a result of this decision of placing the company under business rescue, workers have been subjected to rolling lay-offs and short-times that have plunged them into deep financial crisis. Furthermore, the company has failed to pay workers salaries in full for several months. It is unclear whether the company is compliant with the statutory pays such as Provident Fund and UIF.
CastProducts South Africa is a manufacturer of cast products for the mining, railway, power and general engineering industries. The company specialises in metallurgical and foundry to design and manufacture a wide variety of products which include car frames, freight car components and high-integrity cast steel railway wheels, gear segments, large high chrome white iron coal pulverizing wear parts, mill liners, slag pots, locomotive frames, railway bogie components and cast mono-bloc railway wheels.
“We have been told by members that the Business Rescue Practitioners (BRPs) have not complied with the laws in establishing committees and providing status reports. As the NUM we highly condemn such reckless conduct , if proven to be correct”, said NUM Metal Sector Coordinator Mawonga Madolo.
To further make matters worse the BRPs resolved last week Friday that the business would be closed indefinitely while at some times they did acknowledged healthy order books. This in our view is self-inflicting on the part of the company which may lead to liquidation.
The NUM had instructed its legal department to initiate a process to engage the BRPs to getting to the bottom of the issues and explore legal avenues on behalf of members. The NUM will also engage other creditors and stakeholders to look at the possibility of removal of the BRPs or any other options that will rescue the company to protect job security of our members.
For more detailed information, please contact:
Mawonga Madolo, NUM Metal Sector Coordinator, 083 613 8610
The National Union of Mineworkers7 Rissik Street.Cnr Frederick JohannesburgTel: 011 377 2111 Cell: 083 809 3257Twitter: @Num_Media
Its birth was facilitated by comrades Cyril Ramaphosa who rose to be its first General Secretary, James Motlatsi who turned to be its first President, and Elijah Barayi who became its Vice President and later the President of Cosatu in 1985 when the federation was formed. porn