The National Union of Metalworkers of SA (Numsa) embarked on indefinite strike action at SA Steel Mills on Wednesday, after the steel producer allegedly fired more than 100 workers for participating in what the labour court ruled was a lawful strike.
Numsa members downed tools on April 16 in support of their demands to be represented by union shop stewards in the workplace. SA Steel Mills, trading as Alfeco Holdings, was granted a temporary interdict against the striking Numsa members on April 19.
Numsa successfully applied for a court interdict on May 7 to stop the company management from unfairly disciplining and dismissing the striking employees. On Monday, the labour court ruled that the industrial action was a protected and lawful strike. It also upheld the interdict Numsa applied for on May 7.
Numsa Sedibeng regional secretary Kabelo Ramokhathali said the April 16 strike “has now been declared lawful by the courts, and therefore they cannot discipline or dismiss workers for participating. In essence, SA Steel Mills was attempting to punish workers for exercising their constitutional right to strike, by firing them.”
Ramokhathali said Alfeco Holdings CEO Sachin Ahuja had no respect for SA’s laws as he allegedly “ignored” the court order and “proceeded to dismiss over 100 workers anyway”.
“Numsa will be dealing with this issue through its attorneys. However, in the meantime, workers at SA Steel Mills (Alfeco Holdings) are ready to shut down the company through strike action. Workers will withdraw their labour starting from May 22. This is an indefinite strike until all demands are met,” Ramokhathali said.
“Numsa is the majority union at the company and it has the capability to shut down all production.”
In 2021, Numsa embarked on a three-week wage strike in the steel and engineering sector, which resulted in employees forfeiting about R300m in wages and cost the sector, which contributes about 1.5% to GDP, R600m in lost output.
The steel sector, which provides steel to the automotive, mining, construction, aero and defence, and rail industries, has been a victim of declining prices due to an increase in cheap imports.
Ramokhathali said: “SA Steel Mills originally constituted two separate entities, which after undergoing name changes resulted in Alfeco Holdings acquiring a majority shareholding in the company. Throughout the structural changes and [until] February 22, Numsa engaged with SA Steel Mills on the conditions of service, shift changes and other issues related to section 197 of the Labour Relations Act.
“Numsa has been attempting to negotiate a recognition agreement with SA Steel Mills since the change of ownership, and has been unable to reach an agreement especially regarding the recognition of full-time shop stewards and related facilities.”
The dispute, he said, continued for months and could not be resolved. “Eventually, on April 11, SA Steel Mills was served with a 48-hour notice to strike, which led to the strike on April 16. The strike was interdicted on April 19. The day before Workers’ Day, (April 30), SA Steel Mills management suspended workers for participating in the strike in the middle of the night and rushed to process the dismissals,” Ramokhathali said.
“To prevent this injustice, Numsa rushed to the labour court and an interim order was granted on May 7, interdicting and restraining SA Steel Mills from imposing any disciplinary sanction against members of Numsa.”
He said SA Steel Mills continued to “ignore the court order because it is still trying to dismiss workers for the strike, even though the court has confirmed that the strike was protected. We will do everything in our power to stop them”.
In January, the Competition Commission approved with conditions Alfeco Holdings’ acquisition of Pro Roof, an investment holding company that owns SA Steel Mills.
Responding to questions from Business Day on behalf of Alfeco Holdings, Stein Scop Attorneys’ Amelia Berman said: “Numsa’s unprotected strike has to be seen in the context of SASM’s [SA Steel Mills] broader business environment. Alfeco Holdings has recently acquired SASM as part of a restructuring and rescue of the business of SASM which has had a number of financial challenges over the past few years.
“Part of this process includes an engagement with all stakeholders, including the workforce at SASM.
“To this end, SASM has ongoing engagements with Fosawu [Future of SA Workers Union] who represent the vast majority of employees at SASM.
“Against this background Numsa, acting as a minority fringe union, elected to embark on an unprotected (and violent) strike. SASM does not accept this expression of conduct as a constructive or meaningful basis for dialogue between Numsa members, SASM and Alfeco as the new owners of SASM.
“Numsa initially embarked on a strike in April 2024 when SASM refused to entertain the personal demands of Numsa shop stewards for their own enrichment.
“Following misconduct by Numsa members during the April 2024 strike, SASM was left with no choice but to take disciplinary steps against Numsa’s members who were found guilty of misconduct. The process culminated in the dismissal of 124 workers who were identified as having participated in acts of misconduct.
“Today’s strike ( May 22) is a product of such dismissals and has unfortunately resulted in ongoing and perpetual violence, intimidation and acts of damage to property committed by Numsa’s members.
“SASM, as well as its new owners, remain open to consulting with all stakeholders but in the interests of continuity of production and the protection of its employees, SASM cannot abide the nature of the actions taken by Numsa and its members in the name of the strike.
“SASM has instructed its legal team to pursue an application for an urgent interdict to curtail the ongoing damage and violence perpetrated by Numsa’s members. Numsa failed to furnish SASM with undertakings to intervene to ensure that its members would cease the unprotected strike as well as the unlawful conduct in pursuance thereof. Furthermore, in addition to refusing to give these undertakings, Numsa has elected to incite members to resort to violence, intimidation and damage to property, including forcibly removing two female employees from company vehicles against their will and assaulting them for reporting for duty. In this regard, criminal charges have been laid by the victims.
“Both SASM and Alfeco take exception to the characterisation of Mr Ahuja, the CEO of Alfeco, in the press statement of Numsa dated May 21 2024. These ad hominem attacks are unsubstantiated, inflammatory and defamatory and are not based on any interaction between Numsa and Mr Ahuja.
“Insofar as the impact of the strike on production is concerned, the strike has had minimal impact on production at SASM — mindful that the majority of employees at SASM are not Numsa members and are not participating in the strike. However, SASM has had to take significant steps to ensure the preservation of property and the protection of staff members who are not participating in the strike (who have been intimidated and assaulted).”
Update: May 22 2024
This article has been updated with comment from Stein Scop Attorneys on behalf of Alfeco Holdings.
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