Government Seeking Solutions To Prevent ArcelorMittal’s 3500 Workforce Job Losses

• The closure of ArcelorMittal could result in over 3500 jobs being lost in Vanderbijlpark
• Its Vanderbijlpark plant is expected to shut down, and there are fears of the impact this could have on the surrounding area
• The government said it is seeking steps to prevent the expected 3000 jobs bloodbath from the closure of ArcelorMittal

Tebogo Mokwena, a dedicated Briefly News current affairs journalist, contributed coverage of international and local social issues like health, corruption, education, unemployment, labour, service delivery protests and immigration in South Africa during his seven years at Daily Sun and Vutivi Business News.

VANDERBIJLPARK, GAUTENG—The Department of Employment and Labour is working hard to ensure the jobs of over 3,500 ArcelorMittal workers are not lost. This was after ArcelorMittal announced it would shut down its Vanderbijlpark and Newcastle plants and railroad operations.

What is government doing about ArcelorMittal?

The Minister of Employment and Labour, Nomakhosazana Meth, met with ArcelorMittal management in Vanderbijlpark, Gauteng, on 17 January to discuss ways the more than 3500 workers jobs could be safe. Meth said the department's main concern is to engage the steel manufacturer and see if the job losses can be averted.

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Meth added that existing government measures, including the Temporary Employer/employee Relief Scheme, could support the company. An interdepartmental effort led by the Department of Trade, Industry and Competition and Treasury is exploring ways to assist those who could lose their jobs.

How ArcelorMittal's closure affects economy

ArcelorMittal announced in 2023 that 3500 jobs would be lost when it shuts down. Issues such as loadshedding and tariffs imposed on the steel industry, the scrap metal ban and Transnet's rising operation costs have severely affected its operations. ArcelorMittal is the second largest steel manufacturer in the world. It is South Africa's largest steel manufacturer.

The National Association of Automotive Component and Allied Manufacturers said the manufacturer's exit from the economy could affect the automotive sector and domestic procurement, especially at SMME levels. The 1000 tons of steel it produces adds R9.2 million to the country's GDP.

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South Africans react

Netizens on Facebook commented on the impact ArcelorMittal's closure would have on the economy.

Herman Booysen said:

"This can cause a disaster and cause local manufacturing to close. The other plants in other countries will just pick up the load."

Patrick Mitchell said:

"Black and white will be paying the price of the ANC destroying this beautiful country."

Cobus Smith said:

"The snowball effect of this critical key economic industry will be disastrous."

Sihle Zikode said:

"Oh, my God. ANC has killed this country."

Barry Nell said:

"We are going to have no manufacturers and import only Chinese cars made of Chinese steel."

Budget cuts threaten SA jobs

In a related article, Briefly News reported that teachers' jobs across South Africa are at risk. The Basic Education Department faces budget cuts that could threaten thousands of educators' livelihoods.

Approximately 16,000 teachers could lose their jobs as the department faces a shortfall of R3.8 billion. This means 11,000 posts in KwaZulu-Natal, 2000 in the Western Cape, and 3,400 in Gauteng are in jeopardy.

Source: Briefly News