With ArcelorMittal South Africa (AMSA) set to decide the fate of its longs steel business by 28 February 2025, the government is in a flat-out sprint to stop a jobs bloodbath. The Department of Trade, Industry and Competition (DTIC) says it’s all-in on finding solutions to keep the Newcastle and Vereeniging plants running—and thousands of workers employed.
The National Union of Metalworkers of South Africa (NUMSA) isn’t holding back. “Such a decision, if it were to be finalised, will result in the retrenchment of approximately 3,500 employees,” said spokesperson Phakamile Hlubi-Majola.
“According to analysts, the impact of job losses would be devastating, with as much as 100,000 jobs being lost along the value chain.” NUMSA’s picketing outside the Industrial Development Corporation last Friday, demanding swift action as talks with AMSA under Section 189 drag on.
However, according to government, Minister Parks Tau is on the case. The DTIC confirmed he’s awaiting NUMSA’s memorandum before plotting the next move. Meanwhile, a technical working group—pulling in Eskom, Transnet, and industry players alongside government ministries—has been tasked with hammering out economic and policy fixes to keep AMSA afloat.
The stakes are sky-high. “We recognise the significance of this matter for workers, the broader steel industry, and the economy,” the DTIC stated. “The department remains committed to engaging all stakeholders, including AMSA, organised labour, and industry partners, to find sustainable solutions.”
Earlier this year, they called the steel sector a linchpin for manufacturing, mining, and construction—making AMSA’s wind-down threat a gut punch to recovery plans.
Furthermore, AMSA’s been lobbying for government concessions throughout 2024, and Tau’s response was to rally this task force. “The DTIC remains committed to working with AMSA to find a workable and lasting situation,” the department said back in January. Now, with the deadline closing in, Hlubi-Majola warns: “Our members are desperate and anxious.”
Success isn’t guaranteed, but according to the government, they are pushing hard. What’s your call—can they pull it off, or are these jobs toast? Share your take below.
5 Responses
We are now at the endgame unfortunately. Government is too slow to react.
Government cant even sustain their own . Postoffice?
SAL?, transnet?. Escom?. Everything is going down the drain because of Government. So how will they help AMSA to stay open?
Next year its the same song… gonna close, bla bla bla
Another tactic from Mittal NOT to give pay increases coming April
Bullshit, let them shut down. How many times we kept on begging.
Are their jobs toast?!! What a way to put it. While you write people’s lives will be turned upside down. Government couldn’t save so many other places. Would they be able to pull a miraculous rabbit out of the hat? Well let’s see. Let’s speak on previous experience. Were they succesful in saving the Post Office? SAL? Transnet? Eskom?
Yeah holding our breath would not mean much. They should’ve stepped up last year now at 99 they want to run and give the impression they are so desperate to step in and help by mentioning the jobs they successfully created. Ignoring the multitude who will lose their jobs.
This will have a ripple effect and will circle farther than just Mittal workers.
Creating and saving jobs should’ve been the priority since the time Mittal gave the warning. Instead they went about their normal way while so many families couldn’t enjoy the festive season.
Why not flip the script so their jobs are in danger. So they can sit on the edge of their seat praying for a miracle. Only then will they realize how their lack of commitment are destroying jobs.
Unlike a previous comment given I can’t say the same. I realize so many families will suffer. It’s not like there’s employment opportunities around every corner. And let’s face it. People need to eat. Children innocent in the government’s incompetence still need to go to school. Require a roof over their heads. Clothes. And that’s the most basic of needs. Yet nowadays it’s turning into a luxurious struggle.