Court victory stops Ekapa Minerals liquidation

The ruling, delivered on 27 July, protects workers' livelihoods and gives the company a chance to restructure instead of closing. More than 1,000 jobs were at risk after Ekapa applied for liquidation following a fatal mud rush in February where five miners died. NUMSA criticized the company for seeking liquidation while the workers were still missing and before meaningful consultation with the union or government.

The court agreed with IndustriALL affiliate NUMSA over the urgency. Liquidation would threaten workers, creditors and the Kimberley mining community. It also confirmed NUMSA's right, as a recognized trade union representing Ekapa workers, to apply for business rescue.

Ekapa had argued that the mine had no viable future, but the court rejected this position. Evidence showed that the mud rush was localised and that other mines remained functional and commercially viable. Ekapa has three mines namely Du Toitspan and Bultfontein which were affected by the flooding. The third mine, Wesselton, was not affected.

According to the court ruling, business rescue will allow Ekapa to preserve its mining right, access financing and restructure operations. Under the proposed plan, about 500 direct jobs could be saved immediately, with the possibility of better returns for creditors than under forced liquidation.

NUMSA has 369 members at Ekapa. The union has met workers to discuss how they can claim unpaid wages and benefits as part of the business rescue.

"NUMSA salutes its members at Ekapa for their resilience throughout this difficult period and commends our legal team, Lerato Lenyehelo Attorneys, for delivering this victory for the working class. NUMSA remains committed to fighting for every single job and ensuring that workers' lives and livelihoods always come before corporate profit,"

said Andile Zitho, NUMSA regional secretary for the Northern Cape and Free State.

Paule-France Ndessomin, IndustriALL regional secretary for Sub-Saharan Africa, said mining companies must not rush to close operations and retrench workers.

"Retrenchments must be the last resort. We will continue to support NUMSA in its fight to defend jobs and workers' livelihoods at Ekapa."