ArcelorMittal’s Christmas retrenchment announcement shocks – Solidarity

28 November 2023

Solidarity noted with shock ArcelorMittal SA’s announcement that its board and management decided to close three long steel plants.

The decision affects the jobs of approximately 3 500 part-time and permanent employees at three plants in Newcastle, Vereeniging and at Arcelor Rail and Structures.

The reasons given for this drastic decision include Eskom’s continued loadshedding, Transnet’s high costs and the unreliability and unpredictability of and decline in local infrastructure development.

However, these obstacles are nothing new or unfamiliar to Solidarity or the other parties that are involved in Amsa.

Therefore, the timing of the shock announcement can rightly be questioned. A total of 3 500 employees and their families are now facing an uncertain Christmas season. In its statement Amsa indicates that the implementation plan to scale down and close the plants has not yet been finalised and that numerous consultations with stakeholders are yet to take place. 

Amsa’s attitude in the case of announcements of such serious nature has been poor in the past, and this announcement appears to be a repetition of that. A consultation process with key parties affected by such a decision, including trade unions, should undoubtedly have preceded such an announcement. 

The last weeks of 2023 could have been used to discuss solutions or alternatives before a final decision was taken about the matter and employees were notified of the decision.

While we are awaiting the formal section 189(A) notices that precede this type of restructuring, it is also clear how the government’s mismanagement of state enterprises such as Eskom and Transnet, and the government’s inability to promote economic growth, are claiming victims.

After all, these are given as the reasons why 3 500 innocent employees could possibly be left unemployed, and it comes at a time when South Africa’s unemployment rate is the highest in the world.After receipt of the section 189 (A) notice Solidarity will start to meet with members and will support them during all the processes that may follow.

Issued by Willie Venter, Deputy General Secretary: Metal and Engineering, 28 November 2023