Africa-Press – South-Africa. Trade union Solidarity warned that 800,000 direct and indirect jobs could be at risk if the government fails to deliver on its commitments and promises.
Solidarity added that of the 800,000 potentially affected jobs, as many as 300,000 direct and indirect jobs could be at risk from December to early 2026.
The most affected industries in the short term are South African smelters and other related heavy industries.
An additional 500,000 jobs in the steel and manufacturing industries are at risk due to issues in these sectors.
“Some of the employers will be forced to finalise their retrenchment processes within the next few weeks,” Solidarity said.
According to Solidarity, this loss of work is created by government failures, which significantly affect these industries.
“Despite the dark cloud of retrenchments hanging over us, we are experiencing a total lack of urgency from the government,” said Solidarity CEO Dirk Hermann.
“Employers have, for some time, been citing government failures as the primary reason for the wave of retrenchments in energy-intensive industries.”
These sectors’ survival is threatened by unaffordable Eskom electricity tariffs and Transnet’s defective, unreliable and expensive transport and port infrastructure.
Another problem is the cheap imports of steel, particularly its dumping, and the export tariffs levied against South Africa.
Employers revealed these figures during a NEDLAC mediation process between Solidarity and the government on job losses.
“The employers have given Solidarity permission to publish the figures. These are only employees in the smelting and steel industries,” Solidarity said.
“Job losses in other sectors, which include mining, new vehicles and the manufacturing of vehicle components, are not included.”
Government failures behind job losses
Solidarity CEO Dirk Hermann
Hermann argued that all the reasons for the retrenchments are government failures that can be addressed.
“The first is the electricity tariff structure. Since 2007, electricity tariffs for smelters have increased by 900%, while inflation has increased by 103%,” he said.
“40% to 60% of the ferroalloy industry’s costs are electricity. The electricity dispensation is destroying the industry.”
Companies in the smelting industry affected include Ferroglobe SA, Transalloys, Samancor Chrome, Assmang, MMC Nelspruit, and Glencore-Merafe.
Many other companies have already been forced into retrenchment processes or have closed due to similar reasons.
ArcelorMittal is one such example, with approximately 4,000 direct and indirect jobs having been cut.
Manufacturing at Columbus Stainless Steel was also severely affected in 2025, with production reduced by more than 50%.
He added that Transnet’s poor performance means that only about 20% of transport to and from smelters is by rail.
In the case of stainless steel exported to the USA, logistics costs account for as much as 50% to 80% of local production costs.
Hermann said the problems in this important industry, which employs a large number of South Africans, are going to develop into a social crisis.
“It has been caused by the government, and they must take responsibility. It’s not only companies that are affected, but communities,” said Hermann.
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