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SolidarityANA reports that trade union Solidarity on Thursday said that it regretted the retrenchment crisis at ArcelorMittal SA (AMSA) and warned that if key players in the steel industry did not intervene urgently, those retrenchments might be the first of many to follow.  

Steel manufacturer AMSA announced on Wednesday that it was considering a large-scale restructuring exercise that might affect more than 2,000 jobs, citing a difficult domestic economic environment.  It indicated that although it had embarked on several initiatives to improve efficiencies and address expenditure within its control, those cost-saving initiatives would not be sufficient.  More significant measures had become necessary, including the review of staffing levels.  Marius Croucamp of Solidarity attributed the impending retrenchments to Eskom rising electricity tariffs and to the National Energy Regulator of SA (Nersa) in that the energy regulator had not paid attention to the steel giant's cries for help.  "We warned Nersa that this increase will destroy the industry.  Yet, they continued and now the employees must suffer the cost," he said.  Croucamp also commented the recent implementation of a carbon tax had placed the industry under more pressure, thereby playing a major role in the retrenchments AMSA was facing.  "Solidarity will do everything in its power to ensure that its members affected by this process receive the proposed severance benefits and the necessary support during this difficult time," Croucamp said.

  • Read the full original of the report in the above regard at Engineering News
  • Read Solidarity‚Äôs press statement on this matter at Polity


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