Numsa to present alternatives to Macsteel's retrenchment plan amid ongoing negotiations

The National Union of Metalworkers of South Africa (Numsa) is set to deliver a formal proposal on Monday that includes a series of alternatives to retrenchments at Macsteel Service Centres South Africa.

This initiative aims to establish a voluntary severance framework that respects the dignity of workers while considering the current socio-economic challenges they face.

On Saturday, Numsa called on management at Macsteel to abandon its unilateral measures and return to the negotiation table in good faith.

This plea follows Macsteel's announcement last month that it has taken the difficult decision to enter into a process of restructuring, which may affect a number of its operations and employees.

The company said the global steel and manufacturing sectors have undergone significant changes over the past few years, and neither South Africa nor it have been immune to these challenges.

“Over the past years, the company has implemented a number of measures to address the concerns arising from this global context. However, it is now felt that further action is unavoidable,” Mcsteel said then.

“To this end, we have entered into a process of facilitation, working in collaboration with all concerned parties, including our workforce, union representatives and external stakeholders. Our objective is to be realistic—seeking a way forward that protects both our employees and the future of the company, within the constraints of the current economic climate.”

Mcsteel said this process would be conducted as transparently as possible, in full compliance with both the letter and the spirit of the applicable legislation.

However, Numsa on Saturday strongly condemned Macsteel for allegedly taking a unilateral decision to offer Voluntary Severance Packages (VSP) to employees outside of the formal consultation process, as prescribed in section 189A of the Labour Relations Act (LRA).

Numsa general secretary, Irvin Jim, said this action constituted a direct affront to the consultative principles enshrined in the LRA and undermined the integrity of the facilitated retrenchment process currently underway. 

“It is unacceptable that Macsteel has elected to bypass meaningful engagement with Numsa by offering these so-called "packages" without responding to critical questions posed by the union, as these questions are essential to the union’s ability to propose viable alternatives to retrenchment,” Jim said.

“Numsa regards this approach as a deliberate attempt to exploit the financial vulnerability and uncertainty of workers facing possible retrenchment. The employer's conduct displays a disregard for the dignity and contributions of its workforce, many of whom have served the company loyally for years. The packages offered are woefully inadequate and do not reflect the socio-economic realities faced by workers or the principles of fairness and equity that should guide any severance process.”

Numsa urged all its members employed at Macsteel not to accept these premature and unnegotiated offers, adding that it was actively engaging in the consultation process and is committed to tabling credible alternatives, including a fair and decent VSP framework.

The union encouraged workers to await the outcome of these engagements, which are being undertaken in their collective interest.

It said the package, which was being offered, was neither the product of collective consultation nor reflective of a genuine effort to cushion workers against the devastating consequences of retrenchment. 

“To present such an offer, outside the consultative framework, constitutes bad faith bargaining and renders the process procedurally and substantively flawed,” said the union.

Numsa further cautioned all workers to rely solely on communication from their elected union representatives and shop stewards who are actively engaged in the Section 189A consultation process.

It said Macsteel’s actions reflect a broader pattern of worker exploitation and corporate disregard for labour rights.

“At a time when meaningful consultation is required, the company has instead chosen to act unilaterally and with contempt for its employees’ legal rights and livelihoods,” it said.

“Numsa remains resolute in its defence of workers’ rights and will not relent in the face of such regressive and exploitative conduct.”

BUSINESS REPORT