Johannesburg - Trade union Solidarity believes if urgent steps aren't taken to save South Africa’s struggling steel industry, more jobs could be lost.
The latest causality may be ArcelorMittal’s Vanderbijlpark steel plant which is experiencing financial difficulties.
According to Solidarity, the plant employs 5 000 permanent staff and 2 000 contractors.
“If this plant goes the same route as Highveld Steel, it will result in a catastrophe for the Vaal Triangle region,” said Marius Croucamp, deputy general secretary of the Steel Industry at Solidarity.
Evraz Highveld Steel, in Mpumalanga, underwent business rescue last year.
Its 1 800 workers were left stranded when they were not paid their salaries in February and March.
They suffered another blow when they did not receive retrenchment packages, due to the company’s financial ruin.
Croucamp said urgent steps should be taken sooner rather than later to save the steel industry.
“If there is no concrete plans on the table to assist the struggling steel industry by the end of April, the primary steel industry in South Africa will perish,” he said.
The International Trade Administration Commission (Itac) said it will make a decision in June whether aggressive steps will be taken to protect the steel sector in South Africa said Croucamp.
Labour Bureau