South Africa: Employment and Labour Committee Supports Interventions to Avert Job Losses at ArcelorMittal South Africa (AMSA)

The Portfolio Committee on Employment and Labour supports government’s intervention and engagement with ArcelorMittal South Africa (AMSA) regarding potential job losses due to the company’s decision to wind down its long steel business, exploring avenues to avert job losses and support affected workers.

AMSA raised concerns about possible job losses in the KwaZulu-Natal and Gauteng provinces as a result of possible closure of the company. The briefing the committee received from the Department of Employment and Labour yesterday was appreciative of the cooperation between the departments of Employment and Labour; Trade, Industry and Competition; and other role-players to secure the possible return of AMSA.

Regarding the report of the performance of the Department of Employment and Labour’s entities – the Unemployment Insurance Fund (UIF) and the Compensation Fund (CF) – in the third quarter, the committee noted areas of overachievement in the quarter from both entities in the area of service delivery.

However, the committee raised concerns about a pervasive culture in the department of not filling vacant positions and of employing people in long-standing acting positions. The department should lead by example by filling vacancies to promote a culture of doing so in the entire government system, as this is a problem across all spheres of government, the committee said.

The department was unable to respond to questions on this issue from the committee about why these posts were not filled permanently with suitable and competent people. The department asked to be granted another opportunity to provide the committee with a comprehensive response on this issue.

On the Labour Activation Programme (LAP), the committee Chairperson, Mr Boyce Maneli, said this is a noble project that creates employment opportunities and promotes entrepreneurial development. In this regard, Mr Maneli said the committee is happy with the funding of LAP projects in the Western Cape, Eastern Cape and in North West, which launched recently. “We know that this project will cover all the provinces at the end,” he said.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.