Minister Nomakhosazana Meth meets ArcelorMittal amid looming shut down of its operations
The Minister of the Department of Employment and Labour, Ms. Nomakhosazana Meth and the management of Arcelor Mittal met for an urgent and fruitful engagement on Friday, 17 January 2025 at the Vanderbijlpark Metal Works.
Minister Meth approached Arcelor Mittal for an in-depth discussion on the challenges faced by the company, to find ways in which the Department can also provide support to enhance the ongoing Government support led by the Department of Trade and Industry.
ArcelorMittal CEO, Mr. Kobus Verster cited the high cost of transport and fuel among the main reasons the company had faced pressure relating to running costs over the years. He also mentioned that steel consumption had reduced by 30% less than 30 years ago. The company had undergone the consultative stage with both NUMSA and Solidarity and had started the Section 189 retrenchment process.
“The impact will be huge. We are looking at 2000 employees and a further 1500 sub- contractors who will be impacted; resulting in a downstream impact of 80 – 100 000 jobs. ArcelorMittal also does not want to see job losses because we will be releasing people that we know, whom we have worked with for many years,” said Mr. Verster.
Minister Meth appealed to Arcelor Mittal not to rush any process and provide the Department of Employment and Labour some time to affect the proposed intervention strategy, which includes the Temporary Employer/ Employee Relief Scheme (TERS), applied for by ArcelorMittal.
“As Minister of Employment and Labour, I am committed to utilising all available resources— financial, advisory, and policy-related—to facilitate a positive outcome for ArcelorMittal. We respectfully request your cooperation in maintaining open and transparent lines of communication on any developments that might affect employment levels or operational viability,” said Minister Meth.
The Minister has made a commitment to continue ongoing engagements with Arcelor Mittal and monitor the situation.
Media enquiries:
Ms Thobeka Magcai, Ministry Spokesperson
Email: Thobeka.Magcai@Labour.gov.za
Mobile: 072 737 2205
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