ArcelorMittal points finger at Eskom, Transnet for retrenchments

The company is blaming the closure on Eskom's power crisis and high Transnet costs, as well as the decline in local infrastructure development.

The decision affects the jobs of part-time and permanent employees at three plants in Newcastle, Vereeniging and at Arcelor Rail and Structures.

The reasons given for this drastic decision include Eskom’s continued load shedding, Transnet’s high costs and the unreliability and unpredictability of and decline in local infrastructure development.

In its statement on Wednesday, the company indicated that the implementation plan to scale down and close the plants has not yet been finalised and that numerous consultations with stakeholders are yet to take place.

Solidarity's Willie Venter says ArcelorMittal has an attitude of announcing without engaging the union and workers on the retrenchments.

"A consultation process with key parties affected by such a decision, including trade unions, should undoubtedly have preceded such an announcement.

"The last weeks of 2023 could have been used to discuss solutions or alternatives before a final decision was taken about the matter and employees were notified of the decision."

Venter has lambasted the government for failing to address logistics and energy crisis to save the much needed jobs.

"While we are awaiting the formal section 189(A) notices that precede this type of restructuring, it is also clear how the government’s mismanagement of state enterprises such as Eskom and Transnet, and the government’s inability to promote economic growth, are claiming victims.

"After receipt of the section 189 (A) notice Solidarity will start to meet with members and will support them during all the processes that may follow."

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