Johannesburg - Just a month after Highveld Steel was shut down in eMalahleni, retrenched workers and the town’s municipality have already started counting their losses.
Workers said they were struggling to survive as they had been without an income for the past two months, while no retrenchment packages were paid out by the failed company.
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The municipality said due to this, more than 2 000 families were struggling to settle their municipal debts, putting it in the red. Municipal manager Theo van Vuuren said they had resolved to approach the situation leniently.
“When residents approach us for payment arrangements we are looking at it on a sympathetic level,” Van Vuuren said.
“The impact of the steel plant closing down has had a negative impact on the municipality with members unable to pay their rates and taxes on time, as they previously were able to.”
The situation was, however, dire for former workers who had more than just municipal payments to contend with.
Daniel Shongwe worked as a shift team leader at the steel plant for the past 29 years and has joined millions of unemployed South Africans knocking on company doors daily. The father of three said he wanted to be able to put food on the table for his family again.
“I have been applying non-stop, I do not think that I will find something that will be able to compensate for what I had been getting at Highveld, whatever income I can get I will be grateful for,” Shongwe said.
Another affected worker, Guy Hartley, said he was more concerned about medical cover for his family. He worked as a health and safety officer at the steel company. “We were told by the plant that if we wish to continue with a medical aid scheme, it will be at our own expense. I have two children and their education and health is my number one priority,” Hartley said.
Trade union Solidarity said that its Helping Hands charity organisation had been contributing food parcels to the affected communities.
The union’s Danie Brink said the need to address the poverty situation that had emanated from the closure of Highveld Steel was urgent. “People don’t have any food left; their cupboards are bare. However, the food parcels provide temporary relief,” Brink said.
Businesses across eMalahleni were also recording losses in revenue due to decreased buying power. Van Vuuren added that the situation had further caused the area’s economy to regress and it was essential for all to prioritise job creation.
“We need not only assist in a humanitarian way, but to help create employment for some of these people. The municipality has opened up positions for the unemployed. Many are skilled and I am hopeful that we will be able to employ some of them,” Van Vuuren said.
Local schools were also hard hit after parents defaulted on school fees due to pressures in households.
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