ArcelorMittal’s demise should be ‘celebrated’

As South African authorities are hard at work trying to source a R1-billion rescue package for ArcelorMittal South Africa (Amsa), land rights activists have, however,  thrown a spanner in the works, saying the closure of the steel giant is good riddance.
 
Amsa announced it was considering winding-down operations at its key manufacturing plants in Newcastle on the KwaZulu-Natal Midlands and Vereeniging in Gauteng, taking with it more than 3 000 jobs. But Lucky Shabalala, a known community activist in Newcastle said the move should be celebrated.
 
“The company was a painful reminder that our land was stolen and people killed for it. They stole the land belonging to Kubheka tribal authority, so the company leaving is a victory. The company was built through the sweat, suffering and pain of black people,” said Shabalala.
 
“There has never been any accountability for the amount of pollution and sickness they have caused the people of Newcastle. Even in terms of the local economic development, ArcelorMittal only contributed to the upliftment of white people and not blacks,” he said.
 
Amsa took over what was known as Iscor, which is often credited for laying the foundation for the sprawling township of Madadeni as well the construction of Newcastle.
 
Another land rights activist Mfana Mafuleka said the company had exploited the desperation of workers.  
 
 “They were not progressive as they are purported to be. Company bosses were recycling the workers. They also used labour brokers and never adhered to any labour laws. Workers were put on short-term contracts and left in the lurch.”
 
Meanwhile, Cosatu, which is a key ANC alliance partner, has put the blame for impending job losses in the steel sector at the door of the government.
 
“Cosatu has consistently called on the government to abandon its neo-liberal approach to tackling the country’s worsening socio-economic crisis, and channel resources into accelerating Eskom’s maintenance and generation investments.”
 
Among reasons advanced by Amsa as having triggered the possible closure was the unaffordable energy and logistic costs, and surging low-cost steel imports into the country, particularly from China.
 
Parks Tau, trade, industry and competition minister, met with Amsa’s Group CEO, Lakshmi Mittal, during World Economic Forum gathering to deliberate on the proposed government’s intention to save the steel giant from total collapse. 

 

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