The National Union of Metalworkers of South Africa (Numsa) is outraged at yet another price increases of steel products announced by Mittal Steel South Africa.
Today (Tuesday), Mittal Steel SA chief executive Rick Reato, said the company achieved 49% headline earnings for the 3rd quarter ended September 30, 2006, compared to last year’s corresponding period. But, it continued to ride roughshod over government and labour unions over steel pricing.
Numsa is adamant, as a result that it will mobilize a series of work stoppages, demonstrations, including general strikes in protest against steel price increases.
The union also feared that almost 94 000 jobs in the downstream market as worst affected smaller and medium steel companies were pressurized by the steel price rises to cut more jobs.
“We are being forced to take harsh retaliatory action against Mittal’s arrogant and myopic approach to 5% cut on import parity pricing and high local price increases amounting to 7,5%. These increases were reported to be equivalent to international mark- up trends,” Bafana Ndebele, Numsa’s chief national sector coordinator said yesterday.
The union also plans to file for a section 77 socio-economic strike in order to accommodate those affected metalworkers in the entire steel industry.
Reato, in blowing his own horn revealed that earnings were boosted by higher domestic sales, higher sales prices and a weaker rand/US dollar exchange rate, although earnings were partially offset by lower export volumes and an increase in input material costs.
Mittal Steel has meanwhile, announced operating profit gains amounting to 61% to R1, 94 billion compared to the past quarter and 22% on the comparable quarter.
The foreign-owned country’s major steel supplier has exposed itself as nothing more than a tick feasting on the blood of the destitute and poverty- stricken metalworkers.
Numsa campaign against Mittal Steel is set to intensify Cosatu ninth congress resolution calling for all parastals to be re-nationalized if the company continues riding roughshod over metalworkers and other major stakeholders.
This is despite recent increases in demand from the country’s sprawling building and construction, automotive and packaging sectors in addition to the weakening rand against US dollar stimulating demand from export oriented industries.
Mittal is also engaged in bitter legal wrangle with the Competition Tribunal on alleged excessive steel pricing. And, the dispute with SA Revenue Services over tax deductibility of its controversial Business Assistance Agreement, both which will be concluded early December 2006.
For more information contact:-
Mziwakhe Hlangani, National Information officer
Cell phone: 0829407116
Website: www.Numsa.org.za