The decision of the international oil company ” Shell » leaving South Africa is a major source of concern as thousands of jobs could be lost, the South African Federation of Trade Unions (SAFTU) said on Monday.
The Dutch-UK-based company has been in the middle of a bitter battle for several months with its local partner, Thebe Investment Corporation, which has decided to exercise its right to sell its stake in 2022.
According to Shell, the South African company’s shares today are not even worth the $73m (R1.3bn) invested 22 years ago to acquire a 28% stake in Shell Downstream South Africa (SDSA).
In this context, SAFTU spokesperson Trevor Shaku said the news has shocked employees of the multinational company who are at risk of losing their jobs, calling on the government to intervene to solve the problem.
Also read: Shell predicts LNG demand to grow by 2040
According to media reports, Shell is expected to inform its staff and shareholders of its intention to exit South Africa this week.
Several major economic operators in South Africa have announced their intention to cut thousands of jobs in recent months, further exacerbating the unemployment rate, which reached 32.6% in the last quarter of 2023.
The South African Post Office (SAPO) has announced that almost 5,000 jobs will be lost after negotiations over funding under the Temporary Employee Assistance Program (TERS) collapsed.
In the industrial sector, global steel giant ArcelorMittal also plans to shut down some of its steel-related activities and cut up to 3,500 jobs, citing an outdated economic context.
For its part, the National Union of Mineworkers (NUM) said mining companies had issued a series of layoff notices in recent months, which could lead to the loss of around 10,000 jobs in the first quarter of 2024.
With MAP
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