NUMSA protests against looming retrenchments at ArcelorMittal! Members of the National Union of Metalworkers of South Africa (NUMSA) have taken to the streets, picketing outside the Industrial Development Corporation (IDC) offices in protest against potential mass retrenchments at ArcelorMittal South Africa.
The protest follows an announcement by the steel manufacturing giant that it plans to shut down its long steel-making operations in Newcastle and Vereeniging, a move that could result in the loss of at least 3,500 jobs.
The Crisis at ArcelorMittal
In January 2024, ArcelorMittal South Africa declared that the long steel business was no longer financially sustainable and that its efforts to find a viable solution had been slow-moving.
The company cited challenging market conditions, rising operational costs, and a sluggish local economy as the main reasons for its decision to close these plants.
The steelmaker further stated that, unless the government intervenes, it will make a final decision by the end of February on whether to proceed with the retrenchments.
NUMSA Demands Government Intervention
NUMSA, which represents thousands of workers in the metal and engineering sector, has been vocal in its demand for the government to step in and save jobs.
Speaking at the protest, NUMSA spokesperson Phakamile Hlubi-Majola expressed deep concern about the devastating impact of the potential job losses.
“There will be a loss of at least 3,500 direct jobs. But analysts are telling us that the effect could actually be much higher—we’re talking as high as 100,000 jobs lost,” she warned.
The union has called on the Industrial Development Corporation (IDC), the Department of Trade, Industry and Competition (DTIC), and the Presidency to find urgent solutions to prevent a major economic disaster.
Ripple Effects on the Economy
The possible retrenchments at ArcelorMittal South Africa would have far-reaching consequences beyond the affected employees.
Industry experts estimate that the closure of the Newcastle and Vereeniging plants could lead to the loss of tens of thousands of indirect jobs in related industries, such as:
- Suppliers of raw materials
- Transport and logistics companies
- Small businesses that rely on steel production
If these job losses materialize, it could further weaken South Africa’s struggling economy, which is already grappling with high unemployment and slow growth.
The Role of the Government and IDC
NUMSA has urged the IDC to intervene financially and assist ArcelorMittal in keeping its operations afloat.
The IDC, a state-owned entity, plays a critical role in supporting industries that are deemed strategic to the economy.
NUMSA has also called on the Department of Trade, Industry, and Competition (DTIC) to provide solutions such as:
- Financial support or subsidies for the steel industry
- Protectionist policies to limit cheap steel imports
- Investment in infrastructure projects to increase local steel demand
The union believes that strong government intervention could prevent mass job losses and protect South Africa’s industrial sector.
Workers Fear an Uncertain Future
For workers at Newcastle and Vereeniging, the situation is dire. Many have been with ArcelorMittal for decades and fear that they will struggle to find employment if they are retrenched.
Employees have voiced concerns about how they will support their families and whether they will receive adequate severance packages if the plants shut down.
NUMSA has pledged to continue fighting until a solution is found and has warned that further demonstrations and industrial action could follow if their demands are not met.
Looking Ahead: What Comes Next?
With February coming to an end, all eyes are on ArcelorMittal South Africa and the government to see whether a last-minute intervention can prevent the shutdown and retrenchments.
For now, workers and their families remain in limbo, hoping that negotiations will lead to a positive outcome before it’s too late.
