The National Union of Metalworkers of South Africa (NUMSA) has welcomed a decision by the Labour Court ordering the reinstatement of all workers from Newcastle and Vereeniging who were unfairly retrenched by ArcelorMittal South Africa (AMSA) on October 12.

NUMSA went to court on October 8 seeking an urgent interdict compelling AMSA to issue a fresh Section 189(3) notice or to resume consultations under the January notice issued by the company.

The union argued that meaningful, joint consensus-seeking consultations were required following AMSA’s decision to close its operations in the two towns.

NUMSA General Secretary Irvin Jim said AMSA had ‘unilaterally terminated’ the consultation process in March and later attempted to proceed with dismissals in October ‘on the basis of a process it had already abandoned’.

“We were dismayed that AMSA continued with the retrenchment process, even though the company has received union support to secure government bailouts,” Jim said.

He added that while the Industrial Development Corporation (IDC) was in talks with AMSA to purchase the company, AMSA demanded further financial assistance from government.

When this was refused, the company ‘proceeded to punish workers through dismissals’, he said.

NUMSA argued in court that the IDC’s due diligence and R8.5 billion offer to purchase AMSA should have been properly discussed within the Section 189 process, as it could have presented alternatives to job losses.

The court ruled in NUMSA’s favour, ordering AMSA to:

• Restart consultations with NUMSA about possible retrenchments,
• Refrain from dismissing any workers based on the January notice and reinstate those already dismissed,
• Resume consultations within 10 calendar days of the court order, dated October 27 and pay salaries owed to retrenched workers for the period they were out of work.

Jim said the ruling was a victory for workers and their families.

“This judgment gives us an opportunity to explore alternatives to retrenchments,” he said. “We call on the Department of Trade, Industry and Competition, the Presidency and the IDC to take decisive action to prevent AMSA from destroying South Africa’s primary steel capacity.”

He urged AMSA to engage in good faith during the renewed consultation process.

“If AMSA refuses to seek genuine alternatives, NUMSA will have no choice but to take every possible step to prevent job losses, including applying to place AMSA under business rescue,” Jim said.

He added that government should move towards nationalising AMSA, including its mothballed Saldanha Bay plant, to protect local manufacturing and industrial capacity.

“It is time for government to nationalise AMSA. Endless negotiations between AMSA and the IDC must come to an end. Nationalisation is essential to protect jobs and drive industrialisation,” Jim said.

Arcelormittal South Africa appeals labour court ruling:

In response, ArcelorMittal South Africa confirmed that the company has applied for leave to appeal the decision which for now effectively suspends the court order.

AMSA maintained that it has complied with all its obligations to consult fairly during the wind down process.

“Attempts have been made to explore alternative solutions and during this time and there have been extensive consultation with all stakeholders including labour, yet, unfortunately, solutions could not be found by the end of the deferral period.

“In the circumstances there was no option but to proceed to place the Longs Business into care and maintenance as any further delay would have prejudiced the entire Company,” said Tami Didizi, Group Manager ArcelorMittal South Africa.

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