Labour Minister Meth commits to avert job losses at ArcelorMittal SA.

By Lehlohonolo Lehana.

The Employment and Labour Minister Nomakhosazana Meth has reaffirmed her department’s commitment to prevent job losses at ArcelorMittal South Africa(AMSA).

Meth met with company management at the Vanderbijlpark Plant to address the impending closure of operations in KwaZulu-Natal and Gauteng.

Earlier this month, AMSA announced that it would close its business making long-steel products, after months of consultations with government failed to stave off the threat to thousands of jobs.

Its immediate impact would directly affect 3 500 workers. In the medium- to long-term, the fallout could put an estimated 25 000 to 100 000 livelihoods at risk.

The Minister emphasized that the government is taking a coordinated approach, led by the Department of Trade, Industry, and Competition (DTIC), to explore potential interventions.

“We had a fruitful discussion, and while this is our first meeting, it is clear that a collaborative effort across ministries is critical. We’re joining other interventions initiated by the DTIC, working with Treasury and relevant departments to identify ways to support the company,” said Meth.

Meth stressed the need to act swiftly, acknowledging the uncertainty surrounding the situation but maintaining hope for a positive resolution. “I can’t be a doomsayer and say it is inevitable that jobs will be lost. That is why we are working together to explore all options,” she added.

Meth also highlighted existing government measures designed to assist struggling businesses, including the Temporary Employer/Employee Relief Scheme (TERS), which provides financial support to distressed companies.

“The DTIC, Treasury, and other departments are exploring various avenues to assist. From our side, TERS could be a vital mechanism to support ArcelorMittal. The process has begun, and we are optimistic about its potential to provide relief,” she noted.

The shutdown of ArcelorMittal’s plants in KwaZulu-Natal and Gauteng would have far-reaching consequences, not only for the 3,500 employees but also for local businesses that rely on the steel giant. Meth reiterated the government’s understanding of these ripple effects and underscored the urgency of preserving jobs to stabilize affected communities.

The government is set to hold further discussions with ArcelorMittal management and other stakeholders in the coming weeks.

Meanwhile the National Union of Metalworkers of South Africa (NUMSA) has expressed grave concerns about how these closures would affect workers, local communities, and the wider manufacturing and industrial sectors.

NUMSA initiated a conversation between themselves and the Department of Trade, Industry and Competition (DTIC) and the office of the presidency so they could engage with each other – “because the issues that they were raising were issues of policy”. 

South Africa’s stagnant economy has created a very challenging trading environment for the company, the union said.

“Manufacturing in South Africa has really suffered a lot over the last couple of years. We’ve deindustrialised a lot.”

The South African Communist Party (SACP) stated on Friday that aside from urgently stopping the closure of AMSA’s domestic steel mills and rail-fabrication plant, government must begin to explore public ownership options.

“The SACP will not stand idly by. We will mobilise our structures, workers and communities in Newcastle, Vereeniging, eMalahleni and beyond to take militant action against AMSA’s plans,” it said.

The Communist Party said stopping this from happening was not just an economic imperative but a matter of national security to ensure the survival of domestic steel production and supplies to various manufacturing sectors.

The SACP said government could reclaim a significant or a controlling stake in domestic productive capacity.  

It noted that such a transition must also embrace investment in low-carbon production technologies to secure a sustainable future for the industry.

The African National Congress’s (ANC) alliance partner said the closure of domestic productive capacity would negatively impact the national imperative of industrialisation, including increasing domestic beneficiation of mineral resources and manufacturing employment.

The party said it supported intervention by the Minister of Trade, Industry and Competition Parks Tau aimed at halting AMSA’s plan to mothball its domestic steel mills, shut down production and retrench workers.

Scroll to Top