JOHANNESBURG - Multinational steel manufacturing company ArcelorMittal South Africa said on Wednesday it was mulling a large-scale restructuring exercise which might affect more than 2 000 jobs, citing a difficult domestic economic environment.
In a trading statement, the company said certain costs that were not within its control such as high electricity, rail, port and primary raw material costs had contributed to its challenges.
Although it had had embarked on several initiatives to improve efficiencies and address expenditure within its control, these cost-saving initiatives would not be sufficient. More significant measures had become necessary, including the review of staffing levels.
"Shareholders are accordingly advised that the company will be commencing with a consultation process in terms of section 189(3) of the Labour Relations Act 66 of 1995. A large-scale restructuring is contemplated, and it is anticipated that in excess of 2,000 positions (full time equivalents) may be affected," ArcelorMittal said.
"The final out-come and number of positions affected is subject to a formal consultation process."