The impending job losses at Aela Metal arise from the company's announcement to wind down its operations, potentially impacting 3,500 employees. This decision is attributed to numerous factors, including economic downturns and market competition. Many stakeholders are alarmed by the potential ripple effects on communities reliant on the company's presence.
Numsa has expressed concerns regarding the government's past engagement efforts and how they fall short of actual protective measures for the steel industry. Policy issues underscore the challenges faced by Aela Metal, with competition from cheaper imports threatening local jobs. Stakeholders emphasize the need for stronger governmental support to ensure the steel industry can compete effectively.
With the stakes high, Numsa calls for immediate government action to address the crisis at Aela Metal and prevent widespread job losses. The union highlights the dire economic consequences for communities should the company close its operations. There is a clear demand for effective policy changes and practical solutions to ensure sustainability in the steel sector.
The National Union of Metalworkers of South Africa (Numsa) is sounding the alarm over potential job losses at Aela Metal, a steel giant that recently announced plans to halt its steel-making operations. With approximately 3,500 positions at risk, Numsa is calling on the government to engage with industry stakeholders to address the factors contributing to this crisis. Aela Metal cites weak economic conditions and uncompetitive market environments as major challenges leading to the decision. Numsa argues that more could have been done to avert this situation, emphasizing the need for proactive engagement rather than reactive policy measures. Numsa officials highlighted that Aela Metal previously raised alarms about the long steel business, which indicates a pattern of unaddressed concerns by the government. In 2023, Aela Metal had expressed similar worries regarding the necessity for government intervention within the steel industry, suggesting that these discussions were not sufficient to protect jobs. Critics have pointed out that the lack of concrete outcomes from previous talks raises serious questions about the government’s commitment to solving the issue, especially in light of the staggering unemployment rate exceeding 40% in the country. Unemployment remains a critical concern for South Africa, where communities dependent on industries like Aela Metal face devastating impacts if the company shuts down. Numsa has stated that action must be taken immediately to protect these jobs, as failure to do so would worsen the already dire economic situation. The union posits that policy changes are essential to safeguard local industries from deindustrialization and competition from cheaper foreign alternatives, specifically advocating for government support of small and medium-sized enterprises in the steel sector to ensure sustainable employment.Why doesnt NUMSA buy it and run it profitably ? Unions , BEE and high taxes are the reason these companies are closing.
The Minister(s) are largely to blame through their inaction and failure to deliver on agreements agreed to in meetings.....Ibrahim Patel (SACP) and now Parks Tau.
No definitely not a giant......ISKOR WAS THE GIANT....YOU MUST GO BACK TO SCHOOL.....THANK THE A.N.C........
who were arcellor mittals biggest customers? were they the construction industry that has been decimated by govenment anti-competition policies all fun and games to act like heroes taking on big corporates that create jobs and pay taxes ..... and now we seriously need to consider shutting down Faculties of Engineering at all the major universities . If we dont want a construction industry, and we dont want steel indsutry and we want to replace professional with zama zamas at our mines , we just as well shut down engineering . It costs to much to run engineering departments and if jobs are not being created by companies, we might as well shut these faculties down
Economy experts usually say that steel industry is the sector that shows whether the economy is growing or not. We uses steel when building bridges, building factories, railway infrastructure, etc.
NUMSA is Part and parcel of back door agreements to send steel to China and collapse our industries . That back door agreement is obviously funded.They just talk to bluff their members
ArcelarMittal is a global company, active in numerous zone this is about economies of scale & shareholder value. The US just intervened in a Nippon Steel deal - blocking Japan / US deal from external acquisition.
