MANYANE MANYANE
The ANC Youth League (ANCYL) is set to picket against the retrenchment of mine workers and other industrial job losses.
The party said the picket would amplify the voices of workers and youth affected by corporate ‘greed and policy failures’.
The youth league will also demand urgent action to halt de-industrialisation.
The picket is scheduled for January 24.
This comes after ArcelorMittal announced the closure of its steel business including its Newcastle and Vereeniging plants as well as its rail and structures operation.
This would affect 3,500 jobs.
ANCYL secretary general Mntuwoxolo Ngudle said the party was concerned about the ongoing erosion of South Africa’s industrial base and the threat of de-industrialisation, particularly in the steel manufacturing sector.
“Recent developments, including the decision to mothball or shut down production at Newcastle Works, Vereeniging Works, and the Retail and Structural Mill, represent a significant setback for our nation’s economic development and employment prospects.
“These closures are expected to directly impact over 3,500 workers and indirectly affect up to 25,000 jobs in the broader value chain. This comes at a time when unemployment remains a national crisis, with over 12 million active and discouraged job seekers unable to find work,” said Ngudle.
The party called on the government to take decisive action to ensure the continuity of steel production and preserve jobs.
This includes:
- Securing Strategic Industries: Exploring state ownership or partnerships to safeguard the future of affected steel manufacturing plants.
-Strengthening Industrial Policies: Introducing or enhancing export tariffs on scrap metals to ensure these resources remain available for domestic use, thereby lowering production costs and supporting local industries.
- Revisiting Trade Measures: Adjusting import duties on steel products to protect South African manufacturers, within permissible international trade limits.
- Job Protection: Implementing measures that directly address the economic impact on workers and communities dependent on the steel industry.
The youth league further highlighted the failures of past privatisation efforts, which have left strategic assets vulnerable to exploitation by foreign-controlled monopolies.
They said these policies prioritised private profit at the expense of South Africa’s economic sovereignty and industrial growth.
Ngudle said a new approach is needed—one that places national development and job creation at the forefront.
“South Africa’s youth bear the brunt of the unemployment crisis. The closure of industrial plants not only limits job opportunities but also undermines the future of our economy. A thriving industrial sector is critical to creating sustainable employment and empowering young people to contribute meaningfully to the country’s development,” Ngudle said.
The sentiments were echoed by the DA, saying ArcerloMittal’s announcement underscores the urgent need for South Africa to overhaul its industrial policies.
The party said without bold and innovative changes, ‘our economy will remain in a downward spiral and the unemployment crisis will deepen’.
The opposition’s Trade, Industry and Competition spokesperson Toby Chance said expressions of concern from the government are not enough.
“Empty rhetoric and inaction within the Department of Trade, Industry, and Competition have allowed this situation to worsen. A last-minute bailout of ArcelorMittal by the Industrial Development Corporation of SA (IDC) will only prolong the pain.
“It is time for decisive leadership and legislative reforms that create an enabling environment for economic growth and job creation. This will have a more far-reaching impact than trying to pick winners and pandering to vested interests,” said Chance.
Chance said the party championed evidence-based solutions in “our” Enterprising Economy policy document released last year. The proposals are designed to drive sustained economic growth and address unemployment by:
- Reforming labour legislation to make it easier for businesses to hire and create jobs, while protecting workers' rights;
- Simplifying and streamlining regulations to foster small business growth and encourage entrepreneurship;
- Promoting industrial diversification by incentivising innovation and investment in high-growth sectors, such as green technologies, advanced manufacturing and value-added services;
- Attracting foreign direct investment (FDI) through investor-friendly policies and ensuring policy certainty to build business confidence;
- Upgrading trade policies to ensure competitiveness in global markets while protecting key industries that feed global supply chains;
- Abandoning the unworkable and divisive BBBEE scorecard and replacing it with a new set of socio-economic outcomes to aim at, in line with the UN Sustainable Development Goals (SDGs) which are universally accepted by business
In a statement released on January 6, the Congress of South Africa Trade Unions (Cosatu) said it was imperative that the government consider protective measures for mass employment industries.
The South African Federation of Trade Union (Saftu) said ArcerloMittal’s decision to shut down its Vanderbijlpark operations was not just a corporate decision.
The Federation said this was a national crisis with roots in failed neoliberal policies that prioritised privatisation over public good.
“South Africa cannot afford to lose more jobs, industrial capacity, and economic sovereignty. Saftu stands in solidarity with the affected workers and communities and will fight to ensure that the country’s industrial future is not sacrificed for short-term profits,” Saftu said.