No quick fix as steel industry faces job cuts

UP TO 40 000 steelworkers could lose their jobs after talks between the government and labour failed to find short-term solutions to the jobs crisis in the industry.

Despite several concessions made by the government during a meeting on Friday to ease conditions in the industry, bosses and unionists said it was too late to reverse retrenchments.

In a bid to rescue the ailing industry, which is in a recession, the government has committed to conditionally introducing a 10 percent import tariff while working on a steelscrap exports ban, among other interventions.

The Steel and Engineering Industries Federation of Southern Africa (Seifsa) said while that and other actions would be helpful, it was worried about the amount of time it would take before the effects were felt.

ArcelorMittal chief executive Paul O’Flaherty said the the government had committed to approving the tariff hike application by the end of the week, and all the other applications as quickly as possible.

“The most important ones are anti-dumping duties, because those are the ability to go above the 10 percent tariff rate and those again are going to take time. That’s why we worry about it and that’s why we are talking about it and we are saying in the longer term, there are good solutions on the table but there’s no quick fix today.”

O’Flaherty said steel consumption this year was at the same levels of 2009, when the global economy was in recession. He attributed this to steel imports. “In 2007, imports were 7 percent of steel consumption. Today, it’s close to 30 percent, so there’s a surge of imports, and a lot of these are from China.”

Unions said that while they went into Friday’s discussions united with business and understood the market effects on the industry, they would scrutinise all retrenchment notices.

Metalworkers union Numsa said it would take to the streets to protest against job cuts.

“We have been very clear that what we can’t win in the boardroom, we can win in the streets and the other way around. We are mobilising workers and communities,” said Numsa’s Irvin Jim.

Meanwhile, the other employer body in the steel industry, the National Employers Association of South Africa (Neasa), said it had recorded an increase in applications from companies to be excluded from wage agreements reached in the metal and engineering bargaining council.

Neasa’s members, who are mainly small to medium businesses, say they can’t afford high wage increases. mitment and the public for their support.

Rand Water said it was pleased with the outcome.

“The negotiation process was robust and dynamic. However, the process was concluded in good faith,” said Rand Water spokesman Justice Mohale.

Parties also agreed to a 6 percent increase to the housing allowances for Gauteng workers, which will see them earn just over R2 000.

“Bushbuckridge (in Mpumalanga) will receive 10 percent – more than R1 500,” said Gqeke.