NUMSA demands IDC accountability for devastating steel company closures

Members of the National Union of Metalworkers of South Africa (NUMSA) staged a significant picket outside the offices of the Industrial Development Corporation (IDC) in the Sedibeng region on Tuesday.

This demonstration aimed to highlight the pressing issues surrounding the closure of two prominent steel companies, SA Steel Mills and ArcelorMittal South Africa (AMSA), which have left numerous employees destitute.

Speaking on behalf of the workers, NUMSA spokesperson Phakamile Hlubi-Majola emphasised the union's vital role, representing approximately 80% of the workforce at SA Steel Mills and being the dominant union at AMSA.

 "We handed a memorandum of demands to the IDC, which was received by Mr. Tshepo Ramodibe, the Corporate Affairs Manager," she noted.

Hlubi-Majola voiced the deep frustrations of the workers, stating, "The delays, the contradictions, and the disregard for workers’ livelihoods cannot continue. The IDC has a responsibility to protect jobs and ensure that any rescue of SASM serves the public interest." Workers are adamant that they refuse to be sidelined in this critical situation, demanding "a credible rescue plan that preserves jobs, restores production, and respects workers’ rights."

According to a report from some of the affected workers, the IDC is currently engaged with various interested parties in search of an equity partner for AMSA, yet concerns persist. 

While negotiations progress, the plants in Vereeniging and Newcastle were mothballed at the end of October, leaving workers idle and uncertain about their futures. Adding to the anxiety, NUMSA has received alarming reports that the Newcastle plant has potentially been stripped of its assets, raising the spectre of its operations being deemed impossible to restart.

Hlubi-Majola expressed her worry that this would not only diminish the company’s value but could also negatively impact any future sale. “It is very worrying,” she stated. “The actions taken could have lasting repercussions for workers and the local economy.”

NUMSA has made it clear that it expects the IDC to act decisively, transparently, and in accordance with its developmental mandate. "While we remain ready to engage in constructive dialogue, we will not hesitate to mobilise our forces when our members’ futures are at stake,” warned Hlubi-Majola.