Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – Trade union Solidarity says steel producer ArcelorMittal South Africa (AMSA) has issued 200 employees at its Vanderbijlpark plant with Section 189 retrenchment notices.
In terms of the notice, the affected employees could apply for voluntary severance packages.
Solidarity metal industry organiser Johan Venter said in a statement on Monday that AMSA had indicated in the retrenchment notices that it had been experiencing increased operational difficulties and challenges in recent years.
According to the union, the retrenchment process currently only affected employees at managerial level and would not affect artisans and employees at lower job levels.
Venter added that Solidarity had been invited by AMSA’s management to facilitate the retrenchment process on behalf of its members; however, it was not yet clear exactly how many Solidarity members were affected by the process.
“Solidarity can confirm attempts by AMSA’s management to tackle the issues and challenges that gave rise to the retrenchment process. Management, for instance, indicated that it has met with government to discuss possible alternatives regarding carbon taxes,” he noted.
According to Solidarity, AMSA CEO Paul O’Flaherty had indicated that he would see to it that a turnaround plan for AMSA was implemented within the next nine months.
Venter added that Solidarity was looking forward to working with the company to create more certainty for the affected employees in the months ahead.
“Solidarity will make suggestions and propose strategies to management in an attempt to save the company and to limit any negative impact of the process on its members,” he commented.
AMSA confirmed to Engineering News Online on Monday that it had issued a notice of consultation in terms of sections 189 and 189A of the Labour Relations Act to all employees in the corporate services departments.
The notice stated that the company was contemplating restructuring of its corporate services functions owing to operational requirements.
In the notice, the company said it had proposed voluntary severance packages and voluntary early retirement packages as alternatives to minimise retrenchments.