The National Union of Metal Workers of South Africa (NUMSA) has welcomed a decisive Labour Court ruling ordering ArcelorMittal South Africa (AMSA) to reinstate all workers from its Newcastle and Vereeniging Works, whom the union argued were unfairly retrenched by the company on 21 October 2025.
Addressing the development, NUMSA General Secretary Irvin Jim confirmed that the union approached the Labour Court on an urgent basis on 8 October 2025, seeking an interdict compelling AMSA to issue a fresh Section 189(3) Notice, or alternatively, to re-engage in consultations stemming from the Section 189 notice issued on 8 January 2025.
“NUMSA is demanding meaningful joint-consensus seeking consultations, relevant to AMSA’s decision to finally close its operations in Newcastle and Vereeniging. AMSA unilaterally terminated the consultation process on retrenchments at the beginning of March, and whilst there were no consultations thereafter, with major intervening events and developments, AMSA simply wanted to proceed with dismissals in October on the basis of the process it had terminated in March,” emphasised Jim.
Jim further criticised AMSA’s decision to press ahead with retrenchments despite NUMSA’s consistent support in helping the company secure potential government assistance.
“At the same time, the Industrial Development Corporation (IDC) was engaging with AMSA to purchase the company. Whilst this process of negotiation between AMSA and IDC was going on, AMSA demanded more money for a bailout. When the government refused the bailout, AMSA proceeded to punish workers through dismissals, whilst it was still negotiating with the IDC,” noted Jim.
Explaining NUMSA’s position before the court, Jim said one of the union’s primary arguments for an urgent interdict was that the outcome of the IDC’s due diligence exercise and AMSA’s rejection of the purchase offer required full transparency and consultation.
“The IDC’s offer to purchase R8.5 billion needed to be ventilated and discussed in the context of Section 189, because it presented possible alternatives to job losses,” he stated.
The court ruled in NUMSA’s favour, delivering a strong rebuke to AMSA’s handling of the retrenchment process. The judgment outlined the following directives:
- ArcelorMittal must recommence consultations with NUMSA, representing workers, regarding potential retrenchments, ensuring compliance with a fair and lawful process.
- ArcelorMittal may not dismiss any employees at its Newcastle and Vereeniging plants based on the January notice. Any workers already dismissed under that process must be reinstated until proper consultations have been completed.
- Both ArcelorMittal and NUMSA must resume talks within ten calendar days from the date of the court order, 27 October 2025.
- AMSA must pay the reinstated employees their full salaries for the duration of the retrenchment period.
Following the judgment, Jim indicated that NUMSA intends to leverage this victory to call on the Department of Trade, Industry and Competition (DTIC), the Presidency, and the Industrial Development Corporation (IDC)—as central government institutions—to intervene decisively and prevent AMSA from dismantling South Africa’s primary steel production capacity.
He underscored that NUMSA expects AMSA to enter the renewed consultation process in good faith, with a clear commitment to exploring viable alternatives to job losses.
“If AMSA fails to do this, NUMSA will be left with no option but to follow the Companies Act, and apply to place AMSA legally under business rescue. Furthermore, it is time for the government to nationalise AMSA and these endless negotiations between IDC and AMSA must be brought to a close. The government must do everything to ensure that Newcastle is not closed. Nationalisation of AMSA will also mean that the government must take over AMSA entirely, and this includes the plant in Saldanha Bay, (which has been mothballed), in the interest of driving local manufacturing and industrialisation,” concluded Jim.
Newcastillian News contacted ArcelorMittal South Africa for comment, but no response had been received at the time of publication.
Reflecting on the above, the Labour Court’s ruling represents a significant development in the ongoing dispute between the National Union of Metal Workers of South Africa and ArcelorMittal South Africa. It underscores the importance of adherence to due legal processes in matters of employment and consultation.
As both parties move forward under the directives of the court, attention will now shift to the next phase of engagement and its potential impact on the company’s operations, the workforce, and the broader steel industry. The outcome of these renewed consultations may set an important precedent for future industrial relations cases within the country’s manufacturing sector.
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FAQs
The Labour Court ruled that ArcelorMittal South Africa must reinstate workers dismissed in a dispute challenged by the National Union of Metalworkers of South Africa (NUMSA).
NUMSA challenged the dismissals, arguing they were unfair and violated labour rights protected under South African law.
The decision requires the company to reinstate the affected employees, marking a major outcome in ongoing labour disputes within the steel sector.
The ruling reinforces workers’ rights and may influence how future labour disputes are managed across South Africa’s industrial sector.
The National Union of Metalworkers of South Africa (NUMSA) represented the employees, advocating for reinstatement and improved working conditions.
3 Responses
What happens to all the payouts that were given to employees when they left? They get their severance packages (which was zero issue with unions), and now they get reinstated, with backpay?
But they guys that are still working under uncertain conditions, until they get told what’s going for what, get nothing?
Where are all these re-employed workers going to go when their sections are closed?
The severance will need to be repaid; deducted from their reinstatement backpay.
This is crisis of epic proportion