Pretoria - Government’s intervention at Evraz Highveld Steel in Emalahleni has helped secure the continued employment of 650 workers who had been facing possible retrenchment.
The Departments of Labour and Economic Development worked together to facilitate the company’s access to the Department of Labour’s training layoff scheme.
This forms part of government’s broader response to problems experienced in the steel sector.
According to the Department of Labour, China’s lower demand and the oversupply of steel in the world market has negatively impacted the global industry. It has also affected local companies and threatened local jobs.
Government worked closely with stakeholders, including Evraz Highveld Steel management, trade unions Numsa, Solidarity and Cosatu, and the CCMA to identify the training layoff scheme as an alternative to retrenchment, facilitate the application process and finalise agreements between the Department of Labour/Unemployment Insurance Fund, Merseta, the company and trade unions.
The Department of Labour said this agreement is an example of what can be achieved when social partners and stakeholders work together to preserve jobs, reduce poverty and unemployment.
The Department of Labour and Economic Development Department expressed appreciation to the management, the unions and stakeholders of Evraz Highveld Steel for “their resolve to ensure the survival of the company and thereby guaranteeing employment to more than 650 employees”. – SAnews.gov.za
