The National Union of Metalworkers of South Africa (NUMSA) has rejected Alfeco as the preferred business rescue practitioner for SA Steel Mills, citing the company’s alleged poor business practices.
Workers from Vereeniging staged a picket outside the Industrial Development Corporation (IDC) offices in Sandton on Tuesday, where they have now handed over a memorandum of demands expressing their concerns.
NUMSA spokesperson Phakamile Hlubi-Majola said the business rescue process appears to show a clear bias in favour of Alfeco.
“The company that we think that the business rescue practitioner wants to pick is a company called Alfeco,” she said.
“We reject that, we have worked with Alfeco before they arr the reason why SA Steel Mills is in a crisis we dont want a reputation of that.”
She also expressed concern over non-payment issues at ArcelorMittal South Africa despite winning court order forcing it to pay workers and reinstate them
However, AMSA has since filed for leave to appeal the decision, which suspends the order.
“As Numsa we condemn Amsa for this, its like they are punishing workers for something that has nothing to do with them,” she added.
ArcelorMittal SA closed its steel operations in Newcastle and Vereeniging in September, while SA Steel Mills entered business rescue last year.
