3,500 Jobs at Risk As ArcelorMittal Winds Down Long-Steel Business, EFF Blames GNU for Retrenchments
- ArcelorMittal South Africa announced it will be winding down its Longs Business at Newcastle and Vereeniging Works
- The Economic Freedom Fighters (EFF) blamed the Government of National Unity (GNU) for the impending retrenchments
- The EFF's statement sparked mixed reactions on social media, with some stating that the problems started before the GNU
Source: Getty Images
The Economic Freedom Fighters (EFF) has hit out at the Government of National Unity (GNU) following the news of impending retrenchments in the steel industry.
Approximately 3,500 direct and indirect jobs could be lost following an announcement by ArcelorMittal South Africa.
The steel giant announced that it was winding down its Longs Business at Newcastle Works, Vereeniging Works and the rail and structures subsidiary, AMRAS, which ultimately would threaten numerous jobs.
Numerous factors affect ArcelorMittal’s decision
The steel giant’s decision follows financial struggles, which included rising logistics and energy costs, weak economic growth in the country, and a surge in low-cost steel imports, particularly from China.
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In an official statement, CEO Kobus Verster confirmed that steel production would cease soon.
“Steel production is anticipated to cease by late January 2025, with the wind-down of the remaining production processes completed in Q1 2025,” he said.
The company also noted that numerous consultations with the government and stakeholders to find a solution were unsuccessful.
EFF blames GNU for issues
In an official statement regarding the retrenchments, the Red Berets blamed the GNU, saying they were presiding over a continued decline in employment in the country and a deterioration of ordinary people's quality of life.
SA weighs in on EFF’s statement
The EFF’s statement sparked mixed reactions on social media, with some agreeing with them, while others pointed out that ArcelorMittal’s problems started before the GNU was a thing.
@NadiaFerreira85 asked:
“So, all this happened in 6 months? Jirre, you lot in the EFF are severely backward.”
@MotodiMaseloane also quizzed:
“So the chain of events that predate the GNU on this issue does not matter? At all?”
@Luks_Him stated:
“Superior logic prevails once again. The only party that has the best interests of the working class of South Africa.”
@MrFiles333 added:
“I agree with EFF here. This GNU seems to be doing more damage than good.”
@Shabnam_Baran said:
“It's been in the pipeline since early last year. It's got nothing to do with GNU. These giant corporates don't decide in six months that they are packing up and moving out.”
@DontTrustTheFl1 stated:
“The GNU has nothing to do with cheap Chinese imports coming into the country for the last 20 years.”
Cadre Luks said:
“That's why the EFF must be at the helm of this country. The level of logic is superior and always in solidarity with the workers✊🏿.”
ArcelorMittal to shed 3500 jobs
Briefly News previously reported that steel giant ArcelorMittal planned to lay 3500 workers off following an announcement made on 1 December 2023.
The company's CEO said the debilitating energy crisis, rising costs of Transnet operations, and the scrap metal ban contributed to the decision.
South Africans were saddened by the decision, with many blaming the African National Congress for the massive job loss.
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Source: Briefly News
