South African steel producer Iscor on Monday said the number of planned retrenchments at its divisions has not yet been confirmed, contrary to claims by the National Union of Metalworkers of South Africa (Numsa) that it intends to axe 1 600 production workers and an additional 2 000 staff members by December 2003.
Iscor spokesperson Elton Fortuin said the company and certain of its representative trade unions have agreed to a two-month moratorium on retrenchments while the parties continue investigations and consultations over the need for retrenchments.
Numsa on Monday accused the steel producer of being the latest company to use the strong rand as an excuse for the retrenchment of 1 600 production workers.
Numsa spokesperson Dumisa Ntuli said the company was preparing to axe an additional 2 000 staff members by December 2003.
“We are sick and tired of Iscor using the strong rand as a feeble excuse for failing to deal with structural, poor management, environmental pollution and lawsuit problems,” he exclaimed at a press conference in Johannesburg.
Numsa said it has declared war on Iscor, with protest actions at the company starting this week. This will be followed by sympathy protest action at 10 identified secondary steel users.
Fortuin added that the moratorium — which does not cover processes already under way — was initiated as a result of Iscor’s earlier announcement that it was contemplating new efficiency measures to mitigate the impact on the
business brought about by the collapse in demand for steel and the ongoing strengthening of the South African currency.
He continued that the moratorium period, which will terminate at the end of November, would enable the unions to fully investigate the case for change, while continuing the consultation process on possible retrenchments at a future date.
Solidarity and the United Association South Africa (Uasa) are signatories to the moratorium, which is “aimed at finding solutions while taking account of the impact on the company and staff”.
“While the parties are not required to agree on the way forward at the end of the moratorium period, we hope that that the goodwill generated by the moratorium and sharing of information on the need for change, will lead to a very considered approach to the planned efficiency measures,” he said. — I-Net Bridge