Numsa 'has no option' but to end its wage strike at ArcelorMittal

We acknowledge that the company is facing serious challenges: Irvin Jim

The National Metalworkers Union of South Africa (Numsa) has agreed to end its strike at ArcelorMittal South Africa. 

“As a result of the closure of coke batteries 6 and 7 and following due process, ArcelorMittal South Africa issued a retrenchment notice. In response, Numsa issued a strike notice and embarked on industrial action,” the parties said in a joint statement. 

The parties said on Thursday the decision by the union to terminate the strike was taken after constructive negotiations. 

In terms of the agreement, ArcelorMittal will open voluntary separation packages (VSPs) in certain areas of the business in an effort 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. The parties will work together to facilitate applications to the department of employment and labour for benefits in terms of the training lay off scheme in respect of affected employees. 

Once this agreement was signed, the strike terminated formally. 

Kobus Verster, CEO of ArcelorMittal South Africa, said it was important that the company worked with all stakeholders 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 and take the necessary steps to address all these challenges,” Verster said. 

Numsa general secretary Irvin Jim said he had been briefed by Verster on the dire situation facing the business.

“Unfortunately, the company 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.” 

Jim said the union was deeply concerned about the potential closure of the Newcastle plant, which would have severe ramifications for South Africa’s manufacturing capability and further deindustrialise the country. He said such a decision would lead to a job loss bloodbath, with more than 3,500 direct jobs at risk and many more across the steel and engineering value chains. 

“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. 

“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 South Africa’s steel industry.” 

Numsa and ArcelorMittal South Africa 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.”

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