Union squares up for legal action against Ispat Iscor
Solidarity spokesperson Dirk Hermann said yesterday that the union’s legal team was still finalising a plan of action, which would be officially announced this morning, but hinted at a Labour Court challenge.
The union said it felt “betrayed” by Ispat Iscor, which backed out of a three-year moratorium on retrenchments on Monday. This was after assurances were given by the company’s CE, Louis van Niekerk, who last week publicly announced that such an agreement was in place.
Meanwhile, Ispat Iscor has dodged direct comment on claims that it refused to commit to the deal on paper.
Ironically, an earlier threat of legal action by Solidarity, to challenge the steel giant’s rationale for the retrenchment, led to the initial moratorium deal.
As part of this deal, Van Niekerk undertook that the company would not forcibly retrench staff, but would rather rely on “voluntary and natural attrition” to improve levels of performance and meet the challenges of the global steel industry.
Hermann said the union would take “aggressive action” against the company, and pointed out that Solidarity signed a wage agreement with Ispat Iscor while under the impression that the moratorium formed part of the wage deal.
“We are finalising court papers and will announce our plans tomorrow morning (today),” Hermann told Engineering News Online.
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