NUMSA wins labour court battle to reinstate retrenched ArcelorMittal workers

The National Union of Metalworkers of South Africa (NUMSA) has welcomed a Labour Court ruling ordering ArcelorMittal South Africa (AMSA) to reinstate workers who were retrenched from the company’s Newcastle and Vereeniging plants earlier this month.

The decision, handed down on 27 October 2025, follows an urgent application brought by the union earlier in the month. The union approached the court on 8 October to stop what it described as an unfair retrenchment process. The union asked the court to compel the steel producer to issue a fresh Section 189(3) notice and to re-engage in proper consultations about the planned closure of its operations in Newcastle and Vereeniging.

The union argued that the steel producer had acted unlawfully when it proceeded with retrenchments without completing consultations required under the Labour Relations Act. The union said the company had unilaterally terminated the consultation process in March and later dismissed workers in October using a process that had long been abandoned.

According to the union, the Labour Court’s judgment ensures that the steel producer restarts a fair consultation process and reinstates all affected workers while talks continue.

“The court found in our favour, and this means ArcelorMittal must follow a fair process by restarting talks with the union representing workers about possible retrenchments,” NUMSA national spokesperson Phakamile Hlubi-Majola said. She further said “ArcelorMittal is not allowed to dismiss any workers at its Newcastle and Vereeniging plants based on that January notice. If they have already dismissed anyone, they must reinstate them until they have properly followed the fair consultation process.”

The order compels both parties to resume consultations within ten calendar days from the date of the ruling. The court also ruled that the steel producer must pay salaries to workers for the period during which they were retrenched.

The union described the decision as a major victory for workers and their families, saying it provides an opportunity to explore alternatives to job cuts. “This latest victory is another example of NUMSA consistently fighting for workers,” Hlubi-Majola said.

The case arose after the steel producer announced plans earlier this year to close its Newcastle and Vereeniging operations, citing rising costs and reduced profitability in the steel sector. The steel producer issued a Section 189 notice in January, initiating talks on possible retrenchments. However, The union said the process was suspended in March without resolution.

Despite the suspension, the company proceeded with retrenchments in October, prompting the union’s urgent court challenge. The union said the steel producer’s actions were unjustified because significant developments had taken place since March, including discussions between AMSA and the Industrial Development Corporation (IDC) about a potential takeover.

The union said it supported the steel producer’s efforts to seek financial assistance from the government and the IDC, but accused the company of turning against workers when bailout negotiations did not go its way.

“The steel company has been supported by the union to secure government support in the form of bailouts,” Hlubi-Majola said. She further said “At the same time, the IDC was engaging with AMSA to purchase the company. Whilst this process of negotiation was going on, the steel producer demanded more money for a bailout. When government refused the bailout, AMSA proceeded to punish workers through dismissals.”

The union told the court that the IDC’s due diligence findings and its R8.5 billion offer to purchase AMSA should have been discussed during consultations as possible alternatives to retrenchments. It said the Labour Court agreed that the consultation process should have continued in light of those developments.

Following the judgment, the union called on the Department of Trade, Industry and Competition (DTIC), the Presidency, and the IDC to intervene and prevent the destruction of South Africa’s steel manufacturing capacity.

“NUMSA calls on AMSA to come to the consultation process prepared to look for genuine bona fide alternatives,” Hlubi-Majola said. “Otherwise NUMSA will be left with no option but to do everything possible to prevent job losses, both in Newcastle and Vereeniging.”

The union also warned that if the steel producer fails to cooperate, it will consider applying to place the company under business rescue in terms of the Companies Act.

The union further renewed its call for the nationalisation of ArcelorMittal South Africa, saying government must take full control of the company’s assets, including the Saldanha Bay plant that has been shut down.

“It is time for government to nationalise AMSA and these endless negotiations between IDC and the steel producer must be brought to a close,” Hlubi-Majola said. “Nationalisation will ensure that Newcastle is not closed and will revive local manufacturing and industrialisation.”

The Labour Court decision is expected to affect hundreds of workers who were facing retrenchment as part of AMSA’s restructuring plans. The company has not yet commented on the judgment or indicated whether it intends to appeal.

The union said it remains committed to defending workers’ rights and to ensuring that meaningful consultation takes place. The union added that it will continue to push for long-term solutions to preserve the country’s steel production capacity.

The union’s general secretary, said the ruling underscores the importance of fair labour practices and proper consultation between employers and employees.

“This victory demonstrates that when workers are united and organised, justice can prevail,” the union’s general secretary said.