Johannesburg – Macsteel’s determination to supply Voluntary Severance Packages (VSPs) to employees has been criticised by the National Union of Metalworkers of South Africa (NUMSA).
NUMSA General Secretary Irvin Jim mentioned the transfer was “unilateral” and had been made “exterior of the formal session course of.”
The union chief additionally mentioned the VSPs provided to employees “have been insufficient”.
In an announcement on Sunday, 27 July 2025, NUMSA mentioned: “This motion constitutes a direct affront to the consultative rules enshrined within the LRA and undermines the integrity of the facilitated retrenchment course of at present underway”.
The assertion added: “It is unacceptable that Macsteel has elected to bypass significant engagement with NUMSA by providing these so-called ‘packages’ with out responding to important questions posed by the union, as these questions are important to the union’s means to suggest viable alternate options to retrenchment.
“NUMSA regards this strategy as a deliberate try to take advantage of the monetary vulnerability and uncertainty of employees dealing with potential retrenchment.”
Commenting on the matter, Jim mentioned the employer’s conduct shows a disregard for the dignity and contributions of its workforce, a lot of whom have served the corporate loyally for years.
“The packages provided are woefully insufficient and don’t replicate the socio-economic realities confronted by employees or the rules of equity and fairness that ought to information any severance course of,” mentioned Jim.
“We urge all our members employed at Macsteel to not settle for these untimely and unnegotiated provides.”
Jim mentioned NUMSA was actively participating within the session course of and is dedicated to tabling credible alternate options, together with a good and first rate VSP framework.
“Workers are inspired to await the end result of those engagements, that are being undertaken of their collective curiosity,” Jim mentioned.
“The package deal, which is being provided is neither the product of collective session nor reflective of a real effort to cushion employees towards the devastating penalties of retrenchment.
“To current such a suggestion, exterior the consultative framework, constitutes dangerous religion bargaining and renders the method procedurally and substantively flawed.”
Jim mentioned on Monday, 28 July 2025, NUMSA will formally current Macsteel with a complete set of alternate options to retrenchment, together with a proposed voluntary severance framework that’s honest, humane, and reflective of the socio-economic context during which these employees reside.
“We name on Macsteel administration to desert its unilateral strategy and return to the negotiation desk in good religion,” mentioned the NUMSA common secretary.
“NUMSA reserves all its rights in regulation, together with the fitting to problem any procedurally unfair or illegal conduct by the employer.
“We additional warning all employees to rely solely on communication from their elected NUMSA representatives and store stewards who’re actively engaged within the Section 189A session course of.”
Jim mentioned Macsteel’s actions replicate a broader sample of employee exploitation and company disregard for labour rights.
“At a time when significant session is required, the corporate has as an alternative chosen to behave unilaterally and with contempt for its staff’ authorized rights and livelihoods,” mentioned Jim.
“NUMSA stays resolute in its defence of employees’ rights and won’t relent within the face of such regressive and exploitative conduct.”
Last month, on 6 June 2025, Macsteel introduced that it had taken the tough determination to enter right into a means of restructuring, which may have an effect on operations and employees.
Citing challenges within the world metal and manufacturing sectors, Macsteel mentioned it entered right into a means of facilitation, working in collaboration with all involved events, together with employees, union representatives, and exterior stakeholders.
