Numsa’s two-week-old indefinite strike action at Africa’s largest steel producer, ArcelorMittal SA (Amsa), has ended, the two parties announced in a joint statement on Thursday.
Members of the National Union of Metalworkers of SA (Numsa) elected to down tools on November 14 after Amsa’s decision to retrench 107 staff members ahead of the festive season due to the closure of coke-making battery section 6 and 7 as they had reached their lifespan.
In the statement, Numsa and Amsa said the steel producer would “open voluntary separation packages (VSPs) in certain areas of the business” to accommodate the affected people.
“Certain retrenched employees will be entitled to apply for vacancies created through the VSPs as well as being considered to fill existing vacancies. This will include, in appropriate circumstances, consideration of training such employees for a reasonable period,” the statement reads.
“The parties will work together to facilitate applications to the department of employment & labour for benefits in terms of the training layoff scheme in respect of affected employees. Once this agreement was signed the strike terminated formally.”
Amsa CEO Kobus Verster said: “It is important that we work with all stakeholders, especially our employees and organised labour, to place the business on a path of sustainability.
“Our preference is to grow the business and preserve jobs, however we need to be responsible and realistic regarding the host of challenges being faced and take the necessary steps to address all these challenges.”
Numsa general secretary Irvin Jim said: “I have been briefed by the [Amsa] CEO on the dire situation facing the business. Unfortunately, [Amsa] has been left with no option but to restructure its operations, resulting in job losses.
“We acknowledge that the company is facing serious challenges that require urgent attention to maintain current manufacturing capacity and preserve jobs.”
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.
Jim said Numsa was deeply concerned about the “potential closure of the [Amsa] Newcastle plant, which would have severe ramifications for SA’s manufacturing capability and further deindustrialise the country”.
“Such a decision would lead to a massive job loss bloodbath, with more than 3,500 direct jobs at risk. Many more will fall away in backward and forward linkages across the steel and engineering value chains,” Jim said.
“It is regrettable that this is not the first time we are facing such threats. Despite Numsa’s temporary victory in securing agreements to retain job security, including those in the coke-making section until February 2025, the underlying systemic issues remain unaddressed,” he said.
“It is essential that government, particularly the department of trade, industry and competition, leads a process of solution-orientated engagement with all stakeholders to address these urgent challenges and preserve the sustainable future of SA’s steel industry.”
In the statement Numsa and Amsa stressed the importance of “swift and decisive action to protect the sustainability of the steel sector”.
“The parties emphasise the urgent need for dialogue among all stakeholders, including the government, industry leaders and unions, to address the challenges posed by high electricity tariffs, unfair trade practices and systemic bottlenecks in infrastructure.
“Numsa notes that as we speak jobs in the manufacturing sector are being lost as a result of the two transitions: the transition from fossils fuels to renewables and a transition for combustion engines to electric vehicles.”
The parties noted that the steel industry was integral to SA’s industrialisation and economic recovery, and preserving its capacity and ensuring its sustainability into the future was “not only about protecting jobs today but also about securing the future of the country’s manufacturing ecosystem”.
“Collaboration between the social partners is critical and can ensure this vital sector continues to serve as the backbone of SA’s economy. Both parties agree that the turnaround time of government in facilitating solution orientated engagement between social partners is extremely urgent.
“Both parties agree that in those discussions there should be no holy cows, and all critical matters must be engaged.”
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