Johannesburg – Macsteel’s decision to offer Voluntary Severance Packages (VSPs) to workers has been criticised by the National Union of Metalworkers of South Africa (NUMSA).
NUMSA General Secretary Irvin Jim said the move was “unilateral” and had been made “outside of the formal consultation process.”
The union leader also said the VSPs offered to workers “were inadequate”.
In a statement on Sunday, 27 July 2025, NUMSA said: “This action constitutes a direct affront to the consultative principles enshrined in the LRA and undermines the integrity of the facilitated retrenchment process currently underway”.
The statement added: “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.
“NUMSA regards this approach as a deliberate attempt to exploit the financial vulnerability and uncertainty of workers facing possible retrenchment.”
Commenting on the matter, Jim said 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,” said Jim.
“We urge all our members employed at Macsteel not to accept these premature and unnegotiated offers.”
Jim said NUMSA was actively engaging in the consultation process and is committed to tabling credible alternatives, including a fair and decent VSP framework.
“Workers are encouraged to await the outcome of these engagements, which are being undertaken in their collective interest,” Jim said.
“The package, which is being offered is 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.”
Jim said on Monday, 28 July 2025, NUMSA will formally present Macsteel with a comprehensive set of alternatives to retrenchment, including a proposed voluntary severance framework that is fair, humane, and reflective of the socio-economic context in which these workers live.
“We call on Macsteel management to abandon its unilateral approach and return to the negotiation table in good faith,” said the NUMSA general secretary.
“NUMSA reserves all its rights in law, including the right to challenge any procedurally unfair or unlawful conduct by the employer.
“We further caution all workers to rely solely on communication from their elected NUMSA representatives and shop stewards who are actively engaged in the Section 189A consultation process.”
Jim 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,” said Jim.
“NUMSA remains resolute in its defence of workers’ rights and will not relent in the face of such regressive and exploitative conduct.”
Last month, on 6 June 2025, Macsteel announced that it had taken the difficult decision to enter into a process of restructuring, which could affect operations and workers.
Citing challenges in the global steel and manufacturing sectors, Macsteel said it entered into a process of facilitation, working in collaboration with all concerned parties, including workers, union representatives, and external stakeholders.
