Retrenchments at ArcelorMittal due to loadshedding
30 November 2023
The Economic Freedom Fighters (EFF) notes, with dismay, the announcement by steel producer ArcelorMittal South Africa that it will be retrenching over 3,500 workers at its Newcastle and Vereeniging plants as it closes down operations due to loadshedding. This decision is a direct consequence of the ANC government's catastrophic failure to address the energy crisis that has gripped our country for years.
The EFF has consistently warned that loadshedding would lead to job losses, economic instability, and a decline in the quality of life of South Africans. We also warned that the ANC government's mismanagement of Eskom would have severe consequences for our economy and our people, and this announcement is a stark reminder of the severity of the crisis we face.
The retrenchments at ArcelorMittal are just the latest example of the damage that loadshedding is causing to our economy. Car manufacturers Volkswagen, have also been forced to cut jobs or consider closing plants due to the power crisis, while Telkom retrenched 15% of its workforce earlier this year.
Furthermore, it is reported that about 60% of small businesses in townships have had to lay off workers, and a further 7% have had to completely close down. This is a disaster for our economy and for the livelihoods of millions of South Africans.