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The National Union of Metalworkers of South Africa made a presentation to delegates at the Steel and Engineering Industries Federation of South Africa (SEIFSA) Steel Master Plan Conference earlier today. The purpose of our presentation was to highlight ways to revive the manufacturing industry out of many years of serious de-industrialization that has weakened and undermined the South African economy. The two-day conference is a gathering of all the major stakeholders including government, organized labour, and employers in the steel sector. 

The general secretary of NUMSA comrade Irvin Jim made a presentation titled, “Aligning the SMP’s objectives to NUMSA’s strategic vision for the industry”. The overall theme was about focusing the South African economy on the manufacturing sector. The premise of the argument we made at the conference, was that in order for us to boost our weak economy we would have to prioritize the manufacturing sector. Comrade Jim made the following point:

“We have key ingredients captured within the Steel Master Plan, but it disappoints us as a union that this Master Plan, as with similar initiatives in other manufacturing sectors, has not seen the speed of implementation needed to protect existing manufacturing capacity and become a catalyst for creating the most needed jobs.

In a subdued economy like ours, which is reeling at the back of a number of macro crises, for example the global Covid-19 pandemic, the looting and floods of KZN, which have created conditions that, call on government to be decisive in tackling structural constraints to growing the economy through manufacturing sector. Globally manufacturing has recovered in a post pandemic environment. One only has to look at the boom in the mining sector for one to understand the demand for those products. The only difference and challenge for our economy is that we have not dealt with the structural challenge of transforming and restructuring of the South African economy, which is minerals, energy and finance complex.”

The sad irony is that whilst our country continues to be the minerals supply hub of the world, such minerals are not being beneficiated to champion manufacturing, to build new sectors and to create the most needed jobs. The situation has been made worse because of a bizarre and senseless decision by National Treasury to implement austerity measures instead of increasing spending during the time of a global pandemic. 

All of this is taking place against a backdrop of self-created crisis of loadshedding and rolling blackouts. In the past, certain people would have been fired. However, we have accepted this as the norm, and we even watch press conferences where the GCEO of Eskom Andre De Ruyter tries to explain the necessity of loadshedding, instead of being dismissed for gross incompetence. His failures are destroying the economy resulting in the premature closure of thousands of small and medium sized steel companies. This is economic sabotage. 

NUMSA has solutions to end loadshedding and firing Andre De Ruyter is just the beginning. We have outlined a clear strategy to the Eskom board, and the executive management about ways of solving loadshedding but it would require them to change their attitude and listen to labour and engage us in a meaningful way with a view of solving the problem. We have lost 2000 MW of energy because of the premature closure of coal-fired power stations. Our solutions include that Eskom must establish its own renewable energy company, which must execute 70% of the renewables in the IRP, and it must be allocated nuclear in light of government having taken a decision to include nuclear in the energy mix. Such a demand is in line with the 1998 Government White Paper and it is in the best interest of job security for workers at Eskom. It also ensures the long-term sustainability of the power utility.

Training and championing manufacturing are the key to resolving our challenges. The skills that we urgently require are artisans, welders, engineers and pattern makers etc. These skills are guaranteed to create jobs and lift the working class out of poverty. They also have the potential of absorbing young people into the labour market. Both the industry and government have a duty to engage with the education system at all levels, and to engage the SETA’s to be part of this agenda for a hardcore skills revolution. The NUMSA slogan has been, “from a sweeper to an engineer”. The ultimate objective should be to set up a training centre, which must be a hub to produce these much-needed skills. This programme should replace Youth Wage Subsidy, which takes the form of the YES Youth Programme. We reject the program because young people are exploited and paid low wages, whilst on perpetual temporary contracts. It is not sustainable and it is a matter of time before youth rebel against it. 

Treasury must accept that austerity measures are limiting our economic growth potential. We need an expansionary budget where government intervenes in the economy and drives industrialization. We must move away from inflation targeting and maintenance of high interest, and instead, pursue a job led industrial strategy. 

This was just part of the input, which the NUMSA General Secretary made to delegates. The Steel Master Plan Conference is taking place until Friday the 20th of May at Emperors Palace in Ekurhuleni.

Issued by NUMSA by National Spokesperson Phakamile Hlubi-Majola