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Numsa slams ArcelorMittal for not consulting workers about retrenchments

This week ArcelorMittal announced that it will start section 189 consultations with staff which may affect 2,000 people, but Numsa said even more people will be affected.

FILE: ArcelorMittal South Africa logo. Picture: Supplied.

JOHANNESBURG - Metalworkers union Numsa has slammed metal producer ArcelorMittal for not consulting with workers about looming retrenchments before a market update was issued about it.

This week ArcelorMittal announced that it will start section 189 consultations with staff which may affect 2,000 people, but Numsa said even more people will be affected.

The company said the pending retrenchments are due to projections that its headline earnings for the first half of the year will fall by at least R650 million.

Numsa spokesperson Phakamile Hlubi-Majola said the company’s management has also taken a decision to review contracts with service providers, meaning even more workers will lose their jobs.

"This announcement comes as no surprise, particularly if you consider the fact that just a few months ago, our members embarked on a strike to end outsourcing at the company. Management clearly wants to punish workers for fighting to end the exploitation of contract workers supplied by so-called service providers.

"As Numsa, we will be attending the consultation meeting which is scheduled to take place sometime next week."