Crisis Looms as ArcelorMittal South Africa Announces Closure of Three Plants, Leaving 3,500 Jobs in Limbo

The United Democratic Movement (UDM) expressed deep concern and shock as ArcelorMittal South Africa (Amsa) announced the closure of three plants, putting 3,500 wage earners in Newcastle, Vereeniging, and Arcelor Rall and Structures at risk of losing their jobs just as the festive season approaches.

The decision, attributed to a myriad of factors, including Eskom’s persistent loadshedding, Transnet’s high costs and unreliability, disruptions to rail services, escalating energy prices, and South Africa’s declining infrastructure development, has sent shockwaves across the nation. The UDM squarely places blame on the African National Congress’ (ANC)-led government for these challenges, asserting that the consistent low economic growth is a direct consequence of mismanagement.

Numerous businesses, families, and even students grappling with studying by candlelight due to ongoing loadshedding have experienced significant stress and financial losses. The UDM questions the appointment of Kgosientsho Ramokgopa as the Minister of Loadshedding (Electricity), alleging that it is another instance of ANC’s cadre deployment, motivated by their prolonged control of the nation for almost 30 years.

President Cyril Ramaphosa’s recent accusations of citizens “badmouthing” the nation when expressing dissatisfaction have further fueled the UDM’s call for a government that collaborates with relevant parties and takes citizens’ concerns seriously.

The UDM predicts severe consequences for local and regional economies, particularly in Newcastle Works, a significant hub for the KwaZulu-Natal province’s economy. While awaiting the formal restructuring notice, the UDM aligns with the union Solidarity in expressing disappointment over the lack of a prior consultation process with affected parties, including trade unions.

ArcelorMittal South Africa’s history of taking extreme measures, evident in the closure of Saldanha Works in 2019, has heightened concerns. The UDM calls for unity among affected workers and trade unions to oppose AMSA’s decision. Contrary to the ANC’s suggested postponement until after the 2024 elections, the UDM advocates for AMSA to explore alternative measures that can safeguard jobs, preventing further impoverishment in affected families.