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Gerhard Papenfus, CEO of the National Employers’ Association of SA (Neasa), writing in his personal capacity, notes that the potential loss of 2,000 jobs at ArcelorMittal SA (Amsa) is getting much justifiable media attention.
But, the steel industry’s loss of 100,000 jobs over the past decade and hundreds of thousands of jobs over two to three decades did not get commensurate attention because it happened gradually and was spread nationally. The result of deindustrialisation policies was not as spectacular as the loss of 2,000 jobs in one workplace, but much more devastating. Noting that one cannot ignore the influence of China on global steel markets, Papenfus go on to argue that much of SA’s pain has been self-inflicted. He says that in SA the steel industry has been a victim of government policies, which have resulted in a “relentless, devastating process of deindustrialization”. According to Papenfus, one of the main culprits is SA’s bargaining council dispensation, or the Metal and Engineering Industries Bargaining Council (MEIBC), which unashamedly discriminates against small businesses, or SMMEs, especially with regard to conditions of employment. Moreover, small businesses suffered in 2015 when the government introduced a 10% customs duty on steel. This was followed by a further 12% safeguard duty, to protect Amsa against the import of cheaper, better quality steel. In the view of Papenfus, rescuing the SA steel market will require both tough operational decisions by Amsa and bold policy decisions by government.
- Read the full article by Gerhard Papenfus at BusinessLive
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