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Solidarity urges government intervention in AMSA retrenchments

7th August 2019

By: Marleny Arnoldi

Online News Editor

     

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Trade union Solidarity has invited the Department of Trade, Industry and Competition to the next retrenchment meeting between itself and steel producer ArcelorMittal South Africa (AMSA).

The union says this is so that the Ministry can get first-hand information from AMSA regarding the reasons it has given for the proposed retrenchments, including high power tariffs, steel imports and rail freight tariffs, all of which impact negatively on the company’s cash flow.

According to Solidarity, AMSA CEO Kobus Verster previously said the company had no other choice but to restructure owing to prevailing market conditions.

However, Solidarity questions how the steel producer has capital to make a R300-million offer to acquire a portion of historical steel producer Highveld Steel’s heavy structural mill.

“There is a clear contradiction between AMSA’s reasons for retrenchment and its actions regarding the offer to buy the structural mill,” Solidarity states.

AMSA plans to cut as many as 2 000 jobs, in a country that has an unemployment rate of about 29%.

“Given the unemployment rate, the Trade and Industry Minister must come up with proposals to assist this company in these difficult times,” the union says.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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