ActionSA blames government policies after the ArcelorMittal South Africa has announced that will retrench 3,500 workers in their operations in Newcastle and Veereniging at the end of this month.
ActionSA Member of Parliament,Alan Beesley said ActionSA expresses its concern that the closure of ArcelorMittal's operations in Newcastle and Veereniging,resulting in the loss of 3,500 jobs,is a stark reminder of the deep-rooted flaws in South Africa's industrial and economic policies.
Beesley has stated that ArcelorMittal's decision to wind down its Long Steel Business is a devastating blow to workers,their families,and the communities of Newcastle and Veereniging,further compounding South Africa's unemployment crisis.
He is also concerned that the closure of these operations by ArcelorMittal will add exacerbate the unemployment situation and will affect a lot of people out there.
He said with a staggering unemployment rate of 32.1%,South Africa simply cannot afford such losses.The impact of this closure will reverberate across industries and households,undermining any hope of economic recovery.
He noted the reasons that led the steel giant to close its operations and he blames government failures to address an ongoing crisis which is not only affecting the steel industry but the entire economy.
"ArcelorMittal's reasons for the closure - prolonged weak economic conditions,logistics and energy challenges,and unsustainable competition from low-cost imports- are clear indicators of the government's failure to address the institutional issues crippling our economy.Even more concerning is the company's acknowledgement that,despite engaging with the government to explore solutions,no sustainable path forward could be found.
"The challenges cited by ArcelorMittal are not unique to the steel industry.Prolonged weak economic conditions,unreliable infrastructure,and escalating energy costs are common to many sectors,raising the question:which South African industry or business will fail next?,"continued Beesley.
He criticised the current government which is only milking the public purse for nothing with a bloated cabinet and which is failing to keep its promises.
He said this closure lays bare the ineffectiveness of the current government.Despite promises of inclusive economic growth,the expanded cabinet has shown more interest in overseas travel and political posturing than in generating economic growth and creating jobs.
He is urging the government to review some policies which might be a contributing factor to the economic crises that are facing by this country.
He stated that ActionSA calls for a comprehensive review and overhaul of South Africa's industrial policies to ensure they are evidence-based and capable of addressing the country's economic challenges.Policies like the Price Preference System(PPS) and export duties must be reassessed,as they have failed to support long-term industrial growth and stability.
He made it clear that this country needs the leadership that will improve the economic situation and create jobs opportunities.
"This is more than just an industrial failure;it is a policy failure.South Africa urgently needs bold and decisive leadership to stabilize key sectors,create jobs,and rebuild the economy.ActionSA stands ready to lead the charge for meaningful reform and to hold the government accountable for its failures,"concluded Beesley.