19 Oct 2016

New Caledonia court halts KNS sackings

11:32 am on 19 October 2016

A court in New Caledonia has stopped the Koniambo nickel plant from sacking 47 employees.

An aerial view taken on September 22, 2015 in Voh, in North Province, New Caledonia shows the Koniambo Nickel SAS (KNS) metallurgical plant belonging to Glencore and Societe miniere du Sud Pacifique.

The Koniambo Nickel plant in North Province, New Caledonia. Photo: AFP

The court in Kone found that the company KNS failed to follow proper procedure when it embarked on a process of eliminating 140 positions.

A union leader had welcomed the decision, saying it shows a multinational cannot do as it pleases.

KNS announced the cuts in the face of heavy losses triggered by a slump in the nickel price.

In a statement, KNS said it would respect the legal steps.

It adds that it undertook the restructure in a bid to help the company survive and save 800 jobs at stake.