Africa’s largest steel producer, ArcelorMittal SA (Amsa), says operations at its three plants across the country remain unaffected by the National Union of Metalworkers of SA’s (Numsa’s) indefinite strike action, which began on Thursday
The strike is over the company’s decision to retrench 107 employees ahead of the festive season.
Amsa spokesperson Tami Didiza said on Thursday the steel producer had received Numsa’s notice of its intention to commence industrial action “at our Newcastle, Vanderbijlpark and Vereeniging operations from November 14. The company successfully challenged the protected status of this strike through a labour court application on November 13”.
“In the court order handed down by judge [Molatelo] Makhura [on Wednesday], employees who fall under business units covered by the maintenance determination are prohibited from participating in any industrial action. The urgent application to interdict industrial action for employees falling outside the business units covered by the maintenance determination will be heard on November 15 at 10am. Operations continue uninterrupted,” Didiza said.
Maintenance determination is a legal agreement issued by the Commission for Conciliation, Mediation and Arbitration (CCMA) outlining employee obligations, among other specifications. Amsa employs 6,000 workers. Of that number, 2,238 fall under maintenance determination.
“Our commitment to fair and lawful treatment of all employees remains unwavering. While the coke batteries are permanently closed and will not reopen, we have ensured that every step in this process has been above board and in full compliance with all legal and regulatory requirements. Our focus remains on maintaining a sustainable business while treating our workforce with the utmost respect and fairness.”
Contingency measures
He said the company has implemented contingency measures to “minimise potential disruptions to our operations and customer service. The safety and security of our employees, contractors, and assets remain our top priority during this period. ArcelorMittal SA will continue to communicate with all stakeholders as the situation develops and remains committed to resolving this matter through constructive dialogue.”
Meanwhile, Numsa said it was “satisfied” with day one of its indefinite strike over the retrenchments process, which started three months ago.
Numsa national spokesperson Phakamile Hlubi-Majola said the strike would have an effect on Amsa’s production targets.
“The purpose of a strike is to [disrupt] production. It’s an action of last resort taken by workers trying to get the attention of the employer. Look, the ultimate goal is to sit with management and discuss alternatives to the retrenchments, because we were robbed of that opportunity. We believe it’s possible to save these jobs,” she said.
Hlubi-Majola said one of the options Numsa put on the table, but which was rejected by Amsa management, was to consider “workers who are reaching the retirement age who may want to take voluntary severance packages (VSPs)”.
In August, Amsa served Numsa with a section 189A notice of its intention to close the coke-making battery section 6 and 7, stating that the batteries “are at the end of their life and cannot be repaired or restored any more”, according to Numsa Sedibeng regional secretary Kabelo Ramokhathali.
“Our members have been provoked into striking following the conclusion of the section 189A process. On November 5, Amsa rushed to issue notices of dismissal, and it refuses to engage on alternatives. It has not disclosed if there are vacancies to absorb some of these workers and refuses to entertain the possibility of VSPs for those workers who are older and may be interested in early retirement,” Ramokhathali said.
The steel and engineering sector is a vital component of the economy, contributing about 1.5% to GDP and counting household names such as Amsa.
The steel sector, which employs about 200,000 people and provides the automotive, mining, construction, aerospace and defence, and rail industries with steel, has been a victim of declining prices due to an increase in cheap imports.
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