Numsa will fight to save jobs affected by closure of ArcelorMittal plants

The National Union of Metalworkers of South Africa (Numsa) says it will fight to reverse the closure of ArcelorMittal South Africa (Amsa) long-steel plants to defend the jobs of its members.

“We cannot allow even more workers to lose their jobs unnecessarily if something can be done. We all have a responsibility to protect jobs, particularly because we have an extremely high unemployment rate and the highest levels of inequality in the world,” the union said. 

The Amsa board and management announced on Monday possible job cuts as the longs steel business will be winding down and put under care and maintenance. It estimated 3,500 people will lose their jobs. The wind-down will affect all long-steel plants, including the Newcastle Works, Vereeniging Works and the rail and structures subsidiary AMRAS. 

Numsa general secretary Irvin Jim said the union did not think there was appreciation by the government of how dangerous it was to allow Amsa to close the plants. 

“Unless a solution is found to retain the current capacity, allowing these plants to close could be potentially catastrophic, and it would spell disaster for manufacturing and industrialisation of our country.

“This would have a direct negative affect on the community in Sedibeng and in Newcastle where these plants are located,” Jim said.

Numsa said before the year ended, Amsa had indicated it was going through financial difficulties. At the time, Numsa called on the government to open up a discussion with all social partners in steel and engineering to engage on the issues raised by Amsa management about its challenges.

“In our view, these engagements should include the auto sector and the components value chain to discuss the details and the claims made by Amsa that they are operating under unbearable uncompetitive conditions.

“Amsa claims that their competitors are given an unfair competitive edge on discounted scrap metal of about 40% and they are demanding a discussion on import duties.” 

Jim said it was the union’s duty to do everything possible to save jobs.

“However, government led by the department of trade, industry and competition (DTIC) and the entire economic cluster must be involved as it is related to Eskom and Transnet.

“In our view there should be no holy cows in this debate as it is about protecting the current capacity for manufacturing and this is crucial to drive the most needed manufacturing and industrialisation of our country, so that we can protect existing jobs, create new jobs that we desperately need, and to stimulate economic growth,” Jim said. 

He said the DTIC and the government's economic cluster including the office of the presidency had been engaging with Amsa on its plans to close the plants.

“It means those negotiations and engagements have failed to bear fruit. As Numsa we are demanding that the office of the presidency must give a public account as to what it is that they cannot agree on regarding the demands made by Amsa.” 

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