Labour Minister Pledges to Avert Job Losses at ArcelorMittal Amid Plant Shutdown Threats

Government Explores Comprehensive Interventions to Safeguard 3,500 Jobs in KwaZulu-Natal and Gauteng

Employment and Labour Minister Nomakhosazana Meth has reaffirmed her department's dedication to preventing job losses at ArcelorMittal South Africa, one of the country's largest steel producers. Minister Meth met with company management at the Vanderbijlpark Plant to address the impending closure of operations in KwaZulu-Natal and Gauteng, a move that could potentially result in the loss of 3,500 jobs and widespread socio-economic impacts on families and businesses in affected regions.

Following the discussions, Minister Meth expressed optimism about the collaborative approach being pursued. "We held a successful meeting, and we also understand the challenges that the business is facing. Our main concern and responsibility is to engage and see if we can avert the situation by preventing job losses. Preserving employment is at the core of our mandate," she stated.

Collaborative Efforts Underway

The Minister emphasized that the government is taking a coordinated approach, led by the Department of Trade, Industry, and Competition (DTIC), to explore potential interventions.

"We had a fruitful discussion, and while this is our first meeting, it is clear that a collaborative effort across ministries is critical. We’re joining other interventions initiated by the DTIC, working with Treasury and relevant departments to identify ways to support the company," said Meth.

The CEO of ArcelorMittal and his team reportedly committed to engaging with government efforts to seek solutions. Meth stressed the need to act swiftly, acknowledging the uncertainty surrounding the situation but maintaining hope for a positive resolution. "I can’t be a doomsayer and say it is inevitable that jobs will be lost. That is why we are working together to explore all options," she added.

Support Programs for Distressed Businesses

Minister Meth also highlighted existing government measures designed to assist struggling businesses, including the Temporary Employer/Employee Relief Scheme (TERS), which provides financial support to distressed companies.

"The DTIC, Treasury, and other departments are exploring various avenues to assist. From our side, TERS could be a vital mechanism to support ArcelorMittal. The process has begun, and we are optimistic about its potential to provide relief," she noted.

Socio-Economic Implications

The shutdown of ArcelorMittal’s plants in KwaZulu-Natal and Gauteng would have far-reaching consequences, not only for the 3,500 employees but also for local businesses that rely on the steel giant. Meth reiterated the government’s understanding of these ripple effects and underscored the urgency of preserving jobs to stabilize affected communities.

Next Steps

The government is set to hold further discussions with ArcelorMittal management and other stakeholders in the coming weeks. Meanwhile, departments involved in the effort will continue to explore innovative solutions to safeguard jobs and sustain the steel industry in South Africa.