Thousands of workers and their families across Newcastle and Vereeniging exhaled in relief when the National Union of Metal Workers of South Africa (NUMSA) welcomed a Labour Court ruling ordering ArcelorMittal South Africa (AMSA) to reinstate all employees who were retrenched on 21 October 2025.
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However, the steel producer has since confirmed that it has applied for leave to appeal the decision, casting uncertainty over the union’s hard-fought legal victory.
In an official response, Tami Didiza, AMSA’s Group Manager for Stakeholder Management and Communications, clarified that NUMSA had taken the company to the Labour Court to challenge the Longs Business consultation process, which was finalised on 14 March 2025 and has been in the process of implementation.
“NUMSA has argued that despite the consultation process being concluded, and ArcelorMittal South Africa having suspended implementation, ArcelorMittal South Africa was obliged to commence with a fresh Section 189 process prior to implementing its decision,” said Didiza.
He further explained that the Labour Court had found the company should undertake additional consultations, and that no further dismissals are to occur until this process is completed. The court also ruled that the affected employees must be reinstated.
Despite the ruling, Didiza confirmed that ArcelorMittal South Africa has applied for leave to appeal. He noted that the legal effect of this application is that the court’s order is suspended until further determination. “ArcelorMittal South Africa maintains that it has complied with its obligations to consult fairly.”
While NUMSA initially celebrated the court’s decision as a victory for workers’ rights, the company’s move to appeal has tempered expectations and reignited debate over the fairness of the retrenchment process.
Addressing the broader context of the dispute, Didiza pointed out that the wind-down decision for the Longs Business had been deferred since November 2023 to allow the company time to pursue viable alternatives. “During this time, there has been extensive consultation with all stakeholders, including labour, yet, unfortunately, solutions could not be found by the end of the deferral period. In the circumstances, there was no option but to proceed to place the Longs Business into care and maintenance as any further delay would have prejudiced the entire Company,” concluded Didiza.
As the legal process continues, the fate of hundreds of steelworkers at AMSA’s Newcastle and Vereeniging operations remains uncertain, with both sides standing firm in their positions on the consultation process and the future of the Longs Business.
The outcome of ArcelorMittal South Africa’s appeal will be closely watched, not only by the affected employees and their communities but also by labour unions and industry observers across the country.
The case underscores the ongoing tension between economic survival and labour rights within South Africa’s struggling steel sector. Whether the Labour Court’s ruling is upheld or overturned, the decision is expected to have lasting implications for corporate consultation processes and the treatment of retrenchments under Section 189 of the Labour Relations Act.
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FAQs:
ArcelorMittal South Africa is appealing the Labour Court ruling that ordered the reinstatement of retrenched workers and required further consultation under Section 189 of the Labour Relations Act.
The application for leave to appeal suspends the Labour Court’s order until a final determination is made, meaning the reinstatement is not yet enforceable.
NUMSA maintains that the retrenchment process was unfair and continues to argue that AMSA should have re-engaged in proper consultation before proceeding with dismissals.
Hundreds of employees from AMSA’s Newcastle and Vereeniging operations are affected, along with their families and communities.
The case may set a precedent for how companies handle Section 189 consultations and retrenchments, influencing future labour relations across the steel industry and beyond.
