The IDC has identified potential buyers for SA Steel Mills but Numsa has asked for the prioritisation of workers' rights.
The business rescue process at SA Steel Mills has drawn the ire of the National Union of Metalworkers of South Africa (Numsa).
The union held a protest in Johannesburg on Friday to express its frustration at the way the lives of steel workers have been disrupted by prolonged negotiations.
Numsa’s frustration was directed at the Industrial Development Corporation (IDC) which is a significant shareholder in the steel giant.
Preferential buyer
SA Steel Mills’ over 700 Numsa members have not been paid for over half a year and have been waiting anxiously for a new owner to be confirmed.
Numsa said that two preferential buyers had been identified, but have differing offers pending acceptance.
One of the potential buyers is wanting to procure the assets of SA Steel MIlls, whereas the other takes into account the “needs and aspirations” of the employees through a wholesale purchase.
The union wants the IDC, which needs to approve the deal, to take the offer that prioritises the workers.
“This is a form of legal looting where capitalists swoop in and milk a situation for their own narrow financial benefit,” Numsa said in rejection of the asset-only sale.
Numsa demands
Demands handed over to the IDC on Friday call for the preservation of jobs, safeguarding of workers’ rights and the urgent conclusion of the deal.
“The fate of over 700 workers hangs in the balance. The IDC must prioritise the appointment of a buyer that will create job opportunities and preserve the existing jobs of the workers,” the union said.
“The IDC must prioritise buyers that are interested in acquiring the business as a going concern, meaning that workers will be taken with the company, rather than just acquiring assets.”
As per StatsSA, steel sales were down 2.4% in the second quarter of 2025 compared to the previous quarter.
Numsa and the IDC have a meeting scheduled for 1 September to discuss the matter further.
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