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Trade union Solidarity today said that ArcelorMittal provisionally withdrew the section 189A retrenchment notice at its Vereeniging steel mill. This follows after the country’s largest steel producer informed trade unions last week that it was embarking on a retrenchment process that would affect as many as 600 employees.

According to Marius Croucamp, Head of Solidarity’s Metal and Engineering Industry, the steel giant officially withdrew the notice yesterday following several talks between trade unions and management. “The company indicated that it would first hold proper consultations with all stakeholders, including trade unions, before proceeding with the formal retrenchment process,” Croucamp said.

Croucamp added that these consultations would be crucial to ensure the survival of the steel mill. “Solidarity will be an active participant in these talks in order to find workable solutions that would be in the interests of both the company and our members. We want to prevent the necessity to continue with the retrenchment process at all,” Croucamp said.

ArcelorMittal’s announcement last week followed shortly after Evraz Highveld Steel launched a retrenchment process and Kumba’s recent announcement of the closure of its Thabazimbi mine. “The steel industry is currently experiencing a very difficult time and therefore Solidarity will do everything in its power to assist members in the industry,” Croucamp said.

Solidarity represents an estimated 280 members at the ArcelorMittal steel mill in Vereeniging.

Issued by Solidarity