Union calls on government to save steelworkers’ jobs
3,500 jobs at risk in the industry as ArcelorMittal considers retrenchments
More than 100 people under the banner of the National Union of Metalworkers of South Africa picketed outside the Industrial Development Corporation offices in Johannesburg on Friday. Photo: Silver Sibiya
More than 100 people under the banner of the National Union of Metalworkers of South Africa (NUMSA) picketed outside the Industrial Development Corporation (IDC) offices in Johannesburg on Friday.
They are calling on the government to intervene after ArcelorMittal South Africa (AMSA) announced in January it is considering retrenching 3,500 steel industry jobs at the Newcastle and Vereeniging Works, and AMRAS (the rail and structural subsidiary).
This could impact a further 100,000 jobs in the value chain, the union says.
The union says the IDC has a responsibility to bring stability to the steel industry.
Mbuso Ngubane, NUMSA deputy general-secretary, told the picketers the union had been engaging with government since AMSA raised the prospect of job losses in 2023.
“AMSA is of the view that it is completely unsustainable to produce and trade in long steel products as it has become completely uncompetitive and economically unviable,” said Ngubane.
“AMSA has demanded relevant import tariffs and import-licensing to minimise low-cost imports of steel products into the South African market … especially when imports come from heavily subsidised producers.”
“Our capacity to locally produce railway steel products rests entirely on AMSA’s operations. The threat of AMSA closing down will undermine the Department of Transport’s integrated developmental transport policies that aim to facilitate the movement of goods from road to rail in connection with broadening South Africa’s industrial base.”
In a press statement on 6 January AMSA said, “Despite extensive consultations with government and stakeholders to find viable solutions to sustain the Longs Business, progress was insufficient to avert the wind down.”
Former SA Steel Mills’ workers also joined the picket. More than 100 had been laid off a year ago. The company went into business rescue in September.
“Picketing here is our last hope, because the business rescue practice keeps delaying,” said Teboho Morithi, who worked at the company for two years.
Tshepo Ramodibe, IDC head of corporate, said. “We are committed to facilitating discussions of all parties at SA Steel Mills.”
He said he will hand over the NUMSA memorandum to the Department of Trade and Industry to have discussions with AMSA.
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