Hundreds more jobs on line

01 September 2015 - 02:03 By Mark Allix, Penwell Dlamini and Kingdom Mabuza

As the government, unions and the mines signed a deal to save jobs, the world's biggest steel maker announced plans to shut down a smelter at its Vereeniging, Vaal Triangle, works. ArcelorMittal said it had "no option but to commence consultations" with stakeholders about closing its smelt shop and forge at its specialised steel works in Vereeniging.But the biggest union in the sector, the National Union of Metalworkers of SA, said that, if the company went ahead with its plans it would ask the government to nationalise it."We've been in talks with the company and there has been an indication from the government that it can be rescued. But if the company wants to go ahead with the closing down, we will renew our calls for the government to nationalise the company," said Numsa spokesman Castro Ngobese.The company also said it would review operations at its unprofitable main Vanderbijlpark plant, also in the Vaal Triangle, and associated group corporate services."The possible closure will affect approximately 400 direct employees and contract service employees," ArcelorMittal SA said.The steelmaker has warned in the past it might have to close the entire Vereeniging operation, putting 1200 jobs at risk.Earlier, the government, unions and mining companies signed a 10-point plan to reduce job losses.The plan includes proposals to improve productivity, reskilling of workers, and transferring them.The proposals were adopted after miners, including Lonmin and Anglo American, announced plans to reduce their staff complements as metal prices fell to their lowest since the 2009 global financial crisis."Of critical importance in all 10 interventions is the extended consultation period, the implementation of accelerated rehabilitation processes, the establishment of cost-containment committees and the facilitation of distressed assets to other interested mining companies, among others," the National Union of Mineworkers said.A 10% duty on all imports of steel was imposed last week...

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.