Labour tensions escalate as NUMSA challenges Macsteel’s retrenchment process
The National Union of Metalworkers of South Africa (NUMSA) has accused steel merchandiser and distributor Macsteel of unlawfully retrenching workers without consultation, sparking a national strike.
Image: Phando Jikelo/Independent Newspapers
The National Union of Metalworkers of South Africa (NUMSA) has accused steel merchandiser and distributor Macsteel of unlawfully retrenching workers without consultation, sparking a national strike.
In a statement issued to the media, spokesperson Phakamile Hlubi-Majola said the company issued termination letters and pressured workers into accepting voluntary severance packages without following proper procedures under Section 189 of the Labour Relations Act.
"They imposed termination letters on workers and harassed them, forcing them into taking Voluntary Severance Packages (VSP) of a mere R40 000," Hlubi-Majola said
"The VSP was based only on one week's pay per completed year of service, which is against the norm because workers usually receive three to 4 weeks of gross remuneration for each completed year of continuous service"
Hlubi-Majola said the entire Section 189 process “was a sham” and that the union rejects it outright, and accusing the company of acting in bad faith.
"NUMSA calls on all its members across the length and breadth of the country to intensify the national strike at Macsteel.
"This strike is an act of last resort for our members. Withdrawing their labour power is the only weapon they have to defend themselves against this attack from a ruthless employer".
However, in a statement earlier this week, Macsteel said that it had followed all legal procedures.
"Macsteel approached the retrenchment process with transparency and empathy. Voluntary Severance Packages (VSPs) were accepted by 253 employees, and several vacant positions were filled internally—substantially reducing the number of employees affected".
"While the company initially contemplated retrenching 13% of its workforce, this figure was drastically reduced through a rigorous and compassionate consultation process. Ultimately, only 39 employees—representing just 1.4% of the total workforce—received formal notice of retrenchment on 18 August 2025".
IOL
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