Johannesburg – The National Union of Metalworkers of South Africa (NUMSA) has welcomed the decision of the Labour Court to reinstate all steelworkers retrenched by ArcelorMittal South Africa (AMSA).
The court ruled that steelworkers from AMSA plants in Newcastle and Vereeniging were unfairly retrenched.
Many of them were let go on 21 October 2025.
Hundreds of steelworkers were retrenched amid claims by AMSA of unviable operations amid cheap steel imports, high energy costs, and delayed government support.
AMSA announced the closure of its long-steel plants earlier this year, in January.
NUMSA and other unions challenged the process that culminated in the unfair retrenchment of their members.
The unions argued that AMSA rushed consultations, ignored alternatives like reskilling, voluntary severance packages, and investor buyouts.
They also accused AMSA of not being transparent regarding its financials.
In a ruling on 25 October 2025, the Labour Court found substantive and procedural unfairness in AMSA’s mass layoffs, which began earlier this year as Africa’s largest steel producer faced crippling financial losses of more than R2.7 billion.
Commenting on the court ruling ordering AMSA to reinstate the retrenched workers, NUMSA General Secretary Irvin Jim said: “This is a victory for the union because it provides an opportunity to possibly look at alternatives to retrenchment”.
Jim added: “NUMSA is demanding meaningful joint-consensus seeking consultations, relevant to AMSA’s decision to finally close its operations in Newcastle and Vereeniging”.
NUMSA summarised the court order as follows:
- ArcelorMittal must follow a fair process by restarting talks with NUMSA, representing workers about possible retrenchments.
- AMSA must consult afresh with NUMSA
- ArcelorMittal is not allowed to dismiss any workers at its Newcastle and Vereeniging plants based on that January notice.
- If they have already dismissed anyone because of it, they must reinstate them until they’ve properly followed the fair consultation process mentioned above.
- Both ArcelorMittal and NUMSA must restart those consultation talks within 10 calendar days from the date of this court order (which is 27 October 2025).
- AMSA will have to pay workers who were retrenched their salaries for the period they were retrenched.
