The Congress of South African Trade Unions (COSATU) is disappointed that despite all the support government has given to ArcelorMittal South Africa (AMSA), the company does not appear willing to keep its long steel unit operational beyond September of this year.

ASMA caused a national uproar early this year when it announced its intention to shut down its long steel operations in Newcastle and Vereeniging, putting 3 500 jobs on the line and risking turning Newcastle into a ghost town, as its mill was the centre of economic activity in the area. Disturbingly, role players along the value chain put the total jobs at risk at a frightening 100 000.    

COSATU, its Affiliate, the National Union of Mineworkers and other labour formations called on government to intervene, particularly as AMSA attributed its impending closure of the long steel unit to unaffordable energy and transport costs. Department of Trade, Industry and Competition (Dtic) heeded the call; the Industrial Development Corporation (IDC) provided a R380 million injection in February, in addition to the R1 billion it poured in in June 2024. The Unemployment Insurance Fund’s Temporary Employee/Employer Relief Scheme (TERS) approved R417 million to cover salaries for 12 months. In April the IDC came to the party once again with an additional 1.7 billion facility.

To shield the domestic market as AMSA also complained about cheap steel imports, the International Trade Administration Commission of SA levied a provisional 52.34% tariff on steel coil imports. In spite of all the measures, on Monday AMSA said it could not operate beyond September without financial support from government or further imposition of tariffs on imports.

To say COSATU is disappointed, is an understatement. It is now clear AMSA delayed closure of its long steel unit merely as a public relations stunt. Its repeated threats to shutdown prove it was never committed to saving the operation or the jobs attached to it. Now it has grown tired of playacting and wants to unmask and walk off stage. It is a grave pity because the consequences on workers and their families will be devastatingly real.      

Government must urgently ramp up its interventions. AMSA must either engage on a practical solution in good faith or better yet, sell its operations to a South African company committed to the industry, workers and the economy. It’s clear the owners of AMSA lack any such commitment despite government’s repeated interventions to assist. It’s time it sells its operations.
  

Issued by COSATU

Zanele Sabela (COSATU National Spokesperson)

Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za