The Congress of South African Trade Unions (COSATU) is deeply concerned following ArcelorMittal’s announcement of its plan to wind-down its long steel mill in Newcastle this month, resulting in the loss of 3 500 direct and indirect jobs.
Given the country’s unemployment rate is currently sitting at a shocking 41.9%, we simply cannot afford to lose another 3 500 jobs, plunging workers into instant poverty. The mill closure will not only result in job losses but will have a negative economic impact on Newcastle and its surrounds.
According to ArcelorMittal, its decision to shut down the mill comes after sustained engagements with government over the past year failed to produce a plan to save its long steel business. The company lists unaffordable energy and logistic costs, and surging low-cost steel imports into the country, particularly from China, as some of the main reasons for this decision.
COSATU has consistently called on government to abandon its neoliberal approach to tackling the country’s worsening socio-economic crisis, and channel resources into accelerating Eskom’s maintenance and generation investments to ensure sustainable supply; ensure that Transnet and Prasa are secured and fully modernised to enable products and commuters to reach their destinations on time.
ArcelorMittal has also lamented deteriorating market conditions globally and locally. It is imperative that government consider protective measures for mass employment industries.
The Federation calls on all stakeholders including the Department of Trade, Industry and Competition, our affiliate the National Union of Mineworkers and other industry trade unions and ArcelorMittal to meet urgently to find a way to halt the impending job losses and explore strategies to sustain the long steel business, including reviewing industrial incentives and support, and accelerating the implementation of key sectoral master plans.
Issued by COSATU
Zanele Sabela (COSATU National Spokesperson)
Mobile: 079 287 5788 / 077 600 6639
Email: zaneles@cosatu.org.za
