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5 July, 2001Close to 21,000 jobs at risk if Iscor's proposed unbundling proceeds.
SOUTH AFRICA: Close to 21,000 workers will lose their jobs if the unbundling of Iscor Ltd, a major resources company, into separate mining and steel entities proceeds. If the proposed process goes forth, the workforce in the mining section will be cut by 6,000, and in the steel division all 15,000 workers will lose their employment.
According to the IMF-affiliated National Union of Metalworkers of South Africa (Numsa), which represents the majority of the workers, the steel industry is at great risk if the proposed unbundling of the company fails to produce a sustainable steel industry. Many engineering companies would collapse because they are dependent on Iscor for survival, and it is uncertain whether the unbundling will make Iscor profitable. Numsa is not convinced that the process would yield positive results. Although the steel division has not been making a profit, the mining group made substantial profits over the years and has helped to subsidise the steel division.
Numsa also believes that the unbundling could be seen as a way to undermine the unions in the steel industry.
"The South African economy is shedding jobs particularly in the manufacturing sector, and the loss of close to 21,000 jobs at Iscor will be a great disaster for the South African economy," states the union, asking "Who is to purchase goods and services in the country if the majority of the workforce is losing jobs?"
According to the IMF-affiliated National Union of Metalworkers of South Africa (Numsa), which represents the majority of the workers, the steel industry is at great risk if the proposed unbundling of the company fails to produce a sustainable steel industry. Many engineering companies would collapse because they are dependent on Iscor for survival, and it is uncertain whether the unbundling will make Iscor profitable. Numsa is not convinced that the process would yield positive results. Although the steel division has not been making a profit, the mining group made substantial profits over the years and has helped to subsidise the steel division.
Numsa also believes that the unbundling could be seen as a way to undermine the unions in the steel industry.
"The South African economy is shedding jobs particularly in the manufacturing sector, and the loss of close to 21,000 jobs at Iscor will be a great disaster for the South African economy," states the union, asking "Who is to purchase goods and services in the country if the majority of the workforce is losing jobs?"