Government seeks solutions to 3 500 job losses at ArcelorMittal

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Employment and Labour Minister, Nomakhosazana Meth, has reaffirmed her department’s commitment to exploring all possible interventions to prevent job losses at ArcelorMittal, one of South Africa’s largest steel producers.

The minister met with the management of the steel giants at the Vanderbijlpark Plant, amid the looming shut down of its operations in KwaZulu-Natal and Gauteng.

The shut down may result in the loss of 3 500 jobs, and devastating ripple effects on families and businesses in surrounding areas.

Speaking after the meeting, Meth expressed optimism about the discussions, describing them as a critical step in addressing the challenges faced by the business.

“We held a successful meeting, and we also understand the challenges that the business is facing. Our main concern and responsibility is to engage and see if we can avert the situation by preventing job losses. As you know, our main mandate is employment and ensuring that we preserve the jobs,” Meth said.

The minister reiterated the government’s mandate to preserve employment, and also outlined the collaborative approach being undertaken.

“So, we had a very fruitful discussion. Of course, it was our first meeting, and we can’t say conclusively that we’ve got a solution yet. We are joining other attempts, interventions, and talks by government, led by the Department of Trade, Industry and Competition (the dtic) – which is coordinating efforts across ministries and departments. We have started those discussions in earnest, looking at possible interventions,” the minister said.

Determination to seek solutions

Acknowledging the uncertainty surrounding the situation, the minister emphasised the government’s determination to seek solutions.

“I can’t be a doomsayer and say it is inevitable that jobs will be lost. It is for that reason that we are coming together.

“Earlier on, I appreciated the commitment from the CEO and his team to engage and see how best we can intervene as government to avert the situation. So, there is hope,” she said.

The Minister further highlighted existing government measures, such as the Temporary Employer/Employee Relief Scheme (TERS), as potential support for the company.

“The measures we are taking include efforts led by the DTIC, working with Treasury and other relevant departments, to explore areas where government can assist. As the Department of Employment and Labour, we have a programmee called the Temporary Employer/Employee Relief Scheme that helps distressed businesses. They are starting that process to see if they can be assisted through it,” Meth said.