Labour Court orders ArcelorMittal to reinstate retrenched workers
The Labour Court has ordered ArcelorMittal South Africa (AMSA) to reinstate workers at its Newcastle and Vereeniging plants who
Image: Phando Jikelo/Independent Newspapers
The Labour Court has ordered ArcelorMittal South Africa (AMSA) to reinstate workers at its Newcastle and Vereeniging plants who were retrenched earlier this month.
The ruling requires AMSA to restart consultations with the union and pay salaries for the period affected, as the company explores alternatives to job losses.
The company has been facing financial challenges, including the wind-down of its long steel business, and had previously announced plans to close its Newcastle plant. The company is currently in negotiations with the IDC for a potential purchase.
The National Union of Metalworkers of South Africa (NUMSA) said the court ruling was a victory for workers and would allow meaningful consultations to explore alternatives to retrenchments.
"NUMSA rushed to court on the 8th of October on an urgent basis to request that the Labour Court grant an urgent interdict compelling AMSA to issue a fresh Section 189(3) Notice, or at the very least engage in further consultations pursuant to the January 8 section 189 notice issued earlier this year," NUMSA General Secretary Irvin Jim said.
"NUMSA is demanding meaningful joint-consensus-seeking consultations, relevant to AMSA’s decision to finally close its operations in Newcastle and Vereeniging".
He added that if AMSA fails to engage in meaningful consultations, NUMSA could consider further legal steps, including business rescue proceedings or advocating for nationalisation of the company.
"Furthermore, it is time for the government to nationalise AMSA and these endless negotiations between IDC and AMSA must brought a close".
"The government must do everything to ensure that Newcastle is not closed. Nationalization of AMSA will also mean that government must take over AMSA entirely, and this includes the plant in Saldanha Bay, (which has been mothballed), in the interest of driving local manufacturing and industrialization".
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