AMSA Addresses NUMSA’s Protest Threats Amid Retrenchment Dispute

ArcelorMittal South Africa (AMSA) is facing significant protest action on Thursday, 14 November 2024, at its branches in Newcastle, Vanderbijlpark, and Vereeniging.

The National Union of Metalworkers of South Africa (NUMSA), stated that the protest action comes in response to alleged inhumane treatment by the steel corporation towards its employees, particularly in light of recent retrenchments

In addressing the issue, NUMSA’s Sedibeng Regional Secretary Kabelo Ramokhathali stated, “Just as we are about to embark on the festive season holidays, AMSA has decided to retrench 107 workers. We concluded a section 189A process which began in August of this year. We did not agree with the company’s rationale for the retrenchments because we are not convinced that the only option is job cuts. Only a cruel and uncaring management can toss workers out into the sea of unemployment just before Christmas, and this is why they must be strongly condemned!”

Ramokhathali outlined that AMSA issued NUMSA with a section 189A notice of its intention to close Coke Making Battery sections 6 and 7 in August 2024. According to this notice, several workers were marked for retrenchment. “AMSA stated in its business case that the batteries are at the end of their life and cannot be repaired or restored anymore,” noted Ramokhathali.

Furthermore, NUMSA stressed that it disagrees with retrenchment as a solution and believes AMSA has not provided all relevant information that could potentially safeguard these jobs.

“We think that AMSA has not fully disclosed all the information which can help us to save these jobs. We are told there are vacancies in other parts of the plant. We want full disclosure so we can find alternatives for these workers,” emphasised Ramokhathali, who added that alternatives had been supplied to the steel giant.

In what NUMSA describes as an “insult to injury,” AMSA allegedly had workers forcibly removed from the workplace at 2:00 am on 1 November 2024, based on a perceived threat that they would be disruptive or violent. NUMSA claims AMSA failed to produce any evidence to support this perceived threat and argues that AMSA was instead trying to prevent these workers from serving their 30-day notice period. As stipulated in the section 189 notice, the last official day for these workers was stated to be in the first or second week of December.

Additionally, Ramokhathali voiced concerns over AMSA’s refusal to allow Voluntary Severance Packages (VSPs) for workers who were interested in early retirement. “We are aware that some older workers wish to take early retirement. AMSA refuses to allow for Voluntary Severance Packages for those workers who wish to take early retirement. There are workers who are not part of Coke making department who wish to leave but AMSA claims they are not affected and will not grant them early retirement. It is our view that these job cuts are targeting the most militant section of the workforce. They are getting rid of people who are likely to mobilize workers. These are the most courageous workers who confront management whenever they see our member’s rights being undermined,” he stressed.

At the same time, NUMSA raised concerns over the ongoing reorganisation at AMSA’s Flat Steel plant, where, according to NUMSA, approximately 200 workers stand to lose their benefits and conditions as they are moved to other departments.

The union voiced fears that these workers could experience wage reductions and changes in working conditions, citing AMSA’s lack of consultation on this matter. “AMSA wants to transfer them to other departments, and, in some cases, their core functions will be outsourced. This is worrying because these transfers may tamper with their basic conditions of employment. They are refusing to be transparent on this issue and it makes us suspicious,” said Ramokhathali.

In response to the mounting discontent and upcoming protests, AMSA provided its perspective on the retrenchments and the reorganisation process. Tami Didiza, Group Manager for Stakeholder Management and Communication at AMSA, stated that the decision to proceed with a section 189A process had been carefully considered. Didiza asserted that AMSA had collaborated with labour representatives, including NUMSA, under the guidance of a CCMA commissioner throughout the retrenchment consultation process, which commenced in August 2024.

“We acknowledge NUMSA’s request for alternative employment solutions within ArcelorMittal South Africa for affected employees and reiterate that all possible redeployment options were explored and exhausted during consultations,” said Didiza.

He further dismissed the claim that employees were forcibly removed from the workplace, clarifying that since the Coke Making Batteries had been safely shut down, there was no longer work for employees in those areas. Consequently, AMSA permitted affected employees to stay at home during their notice period.

Moreover, Didiza also addressed the Flat Steel plant’s restructuring, explaining that AMSA’s reorganisation efforts aim to improve operational efficiency. “We emphasise that any reassignment of roles within ArcelorMittal South Africa will operate strictly in accordance with South African labour legislation, and the Company is committed to ensuring that no employee’s conditions of employment will be unfairly compromised.” Didiza reassured employees that AMSA remains committed to engaging with them to clarify any queries or concerns regarding their roles and benefits.

In closing, Didiza expressed hope for a constructive outcome through mutual collaboration.

“We encourage continued engagement with our recognised unions and remain committed to respectful and open dialogue as we navigate these challenging decisions,” he concluded.

However, Ramokhathali indicated that if NUMSA’s demands are not met, the protest action would continue indefinitely.

As protest action now gears up to take place at AMSA, what are your thoughts on the above? Share your views in the comment section below.