Unions to fight buyout of South African steel giant

JOHANNESBURG – Labour unions, vowing to oppose the planned takeover of South African steel giant Iscor by its largest shareholder LNM, had instructed lawyers to prepare papers fighting the move, Solidarity spokesperson Dirk Hermann said yesterday.

Solidarity, the trade union with the largest number of representatives at Iscor, has been joined in its fight by the National Union of Metalworkers of SA (Numsa) and the smaller United Association of SA (UASA). “Our members are incensed by the fact that Iscor, afloat in so much wealth, plans to retrench another 2 000 people,” said Hermann.”We are now arranging meetings with members to obtain mandates for further action.”We also demand that Iscor should disclose the exact number of people to be dismissed and that all retrenchments be negotiated at a single forum”.The union said on Monday that the company was riding the crest of a financial wave.”We know that six executive directors were awarded salary increases of 55 per cent in 2003, in addition to 65 per cent in allowances,” Hermann said.”How can they justify to workers that they have to be retrenched under these circumstances?” UASA said empowerment would be the victim of the Iscor takeover.”There is no way that UASA will … let this takeover destroy the jobs of thousands of workers,” it said in response to news that LNM was on the brink of taking control of Iscor.”Add to this the fact that LNM Holdings is a Caribbean registered company with no local black empowerment contingent [and] this is a major cause for concern,” said Janek Wilimiec, the manager of legal services at UASA.Iscor continued to dismiss media reports stating about 3 600 jobs would be made redundant.Phaldie Kalam, Iscor’s corporate affairs executive, said about 330 positions would become redundant as a result of the creation of shared services in the company.-Business Report”Our members are incensed by the fact that Iscor, afloat in so much wealth, plans to retrench another 2 000 people,” said Hermann. “We are now arranging meetings with members to obtain mandates for further action. “We also demand that Iscor should disclose the exact number of people to be dismissed and that all retrenchments be negotiated at a single forum”. The union said on Monday that the company was riding the crest of a financial wave. “We know that six executive directors were awarded salary increases of 55 per cent in 2003, in addition to 65 per cent in allowances,” Hermann said. “How can they justify to workers that they have to be retrenched under these circumstances?” UASA said empowerment would be the victim of the Iscor takeover. “There is no way that UASA will … let this takeover destroy the jobs of thousands of workers,” it said in response to news that LNM was on the brink of taking control of Iscor. “Add to this the fact that LNM Holdings is a Caribbean registered company with no local black empowerment contingent [and] this is a major cause for concern,” said Janek Wilimiec, the manager of legal services at UASA. Iscor continued to dismiss media reports stating about 3 600 jobs would be made redundant. Phaldie Kalam, Iscor’s corporate affairs executive, said about 330 positions would become redundant as a result of the creation of shared services in the company.-Business Report