Ford Motor’s South African unit plans to lay off more than 470 employees as it seeks to adjust production capacity to match current and future market demands, the South African Solidarity union said.

Ford has sent an official notice to the union and others, notifying them of its intention, Solidarity said in a statement.

The jobs affected are 391 operator positions in Silverton car assembly plant in Pretoria, 73 at Struandale engine plant in Gqeberha and 10 administrative roles, the union said.

Ford Motor Company of Southern Africa confirmed the layoffs, saying in a statement that it was making necessary adjustments to its manufacturing operations in both plants.

“These changes are part of our ongoing efforts to optimise production and respond to evolving market demands,” Ford added.

Economic pressures, international political uncertainties, and the government’s unfavourable policies are making the industry increasingly less competitive, Willie Venter, deputy general secretary of Solidarity said.

“When an automotive giant like Ford takes such drastic steps, it is a warning to the entire industry. We fear that further retrenchments in this industry may be inevitable if conditions do not improve quickly,” Venter said.

“Without serious intervention and economic reform from our government, our country will have to endure even more job losses.”

South Africa’s automotive industry employs 115,000 people directly, with over 80,000 in component manufacturing alone. Low domestic sales of locally made cars, an influx of imports and low levels of local content have led to 12 company closures and over 4,000 job losses in the South African motor and parts industry over two years, the trade minister said earlier this month.

Toyota South Africa’s CEO told Reuters this month that the big seven car companies manufacturing in South Africa including Ford, Volkswagen and Mercedes-Benz have sent a policy recommendation document to the trade minister on how to support and protect the local industry.

Reuters

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In a dramatic and unexpected outcome at the National Union of Mineworkers’ (NUM) 18th national congress, deputy president Phillip Vilakazi unseated his superior Dan Balepile to become the new NUM president, winning by 80 votes.

NUM spokesperson Livhuwani Mammburu confirmed that the congress had resolved to prioritise elections over policy commissions, which would be completed at a special congress set for next month.

“The delegates agreed that elections must come first, and the declarations and resolutions will be finalised later,” Mammburu said.

The surprise result capped off three days of intense politicking, delayed programme items and unresolved tensions within the broader labour movement.

Vilakazi now leads a new top five leadership structure that includes Olehile Kgware as deputy president, Mpho Phakedi as general secretary, Phillip Mankge as deputy general secretary, and Hellen Diatile as treasurer.

The vote took place on Thursday after long delays, with results only finalised late into the night.

The new leadership will steer NUM through the next three years, a period likely to be marked by rising economic uncertainty, worker agitation and the union’s shifting role in South Africa’s contested political space.

The leadership race between Vilakazi and Balepile, once allies, became the defining feature of the congress, overshadowing the expected deliberations on mineworker safety, retrenchments, outsourcing and NUM’s stance on the future of the Tripartite Alliance.

While NUM claimed the focus was on policies rather than personalities, the energy on the floor suggested otherwise.

Delegates from all 11 NUM regions voted in blocs.

Under NUM rules, losing candidates must return to their previous employment, meaning Balepile will now vacate the office he has occupied since 2022.

“Whoever loses goes back to the company where he works. They become ordinary members of NUM again,” said Mammburu.

This leadership turnover comes amid escalating discontent within the alliance.

The outgoing president had criticised the African National Congress during his opening address for aligning with the Democratic Alliance and Freedom Front Plus in the Government of National Unity (GNU), describing it as a betrayal of the working class.

He also cautioned against viewing the SA Communist Party’s independent electoral ambitions as a threat to the ANC.

Whether the new leadership will maintain this combative tone or seek a more conciliatory alliance strategy remains to be seen.

NUM’s policy direction on the ANC, the GNU and the 2026 local elections will only be formalised once the reconvened congress concludes policy deliberations.

Members arrived at the 2025 congress with a long list of pressing concerns. These included job losses due to mechanisation and outsourcing, wage stagnation, poor safety standards in mines, and the retrenchments sweeping across the mining and metal sectors.

With around 200,000 members in the mining, energy, automotive and metal industries, the union is facing pressure to respond to worsening economic conditions.

Many members expressed alarm over employers using labour brokers to replace long-standing NUM workers with temporary staff, undermining collective bargaining and weakening job security.

With unresolved declarations, an uncertain alliance future, and a new leadership team under scrutiny, the coming months will test NUM’s ability to reclaim its position as a fierce advocate for South Africa’s workers.

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Koidu Limited, Sierra Leone’s largest diamond producer, has halted operations and laid off nearly its entire local workforce of more than 1,000 employees following a protracted dispute over pay and working conditions.

Workers at the mine went on strike in December 2024 but suspended their walkout to allow negotiations. They then walked out again in early March.

Charles Kainessie, president of the Koidu Limited Workers’ Union, told Reuters that only a small number of workers were still employed at the company’s head office in Freetown.

Sierra Leone’s labour ministry has received copies of summary dismissal letters for more than 1,000 employees, it said in a statement on May 6.

Kainessie told Reuters that workers had only been receiving 30% of the value of their salaries because they were pegged to the U.S. dollar but paid in the local currency, and the company was using an exchange rate from 2016.

He also said workers lacked access to adequate toilet facilities and drinking water.

Koidu Limited declined to comment on the allegations. Its head of corporate affairs, Ibrahim Turay, said he was “restricted from making any comments on the issue for now”.

The shutdown could impact global diamond markets, already facing supply constraints from major producers, including India. Koidu Limited’s exports are around $100 million, according to industry sources.

FIRST LADY

Koidu has accused Sierra Leone’s First Lady, Fatima Bio, who hails from the area where Koidu operates, of fanning the flames of the dispute.

Fatima Bio visited the area after the walkout in March and addressed the workers, criticising the firm in remarks the company has rejected as false.

Following her visit, she said in a social media post that Koidu had been “unjust to the workers for far too long”.

Gustaf Fredrik Bodin, a Koidu Limited director and its general counsel, responded in a May 6 letter addressed to Fatima Bio accusing her of unlawful interference, incitement, defamation and causing damage to Koidu Limited and Octea Limited.

Neither the First Lady nor her office responded to Reuters’ requests for comments on Koidu’s accusations and threat of legal action.

The letter, seen by Reuters, said Koidu Limited had suffered financial losses exceeding $16 million from the strike, and that it would need $20 million to restart operations.

It demanded a public retraction from Fatima Bio for her statements and a written commitment that she will make no further threats against the company.

Sierra Leone Information Minister Chernor Bah told Reuters that “everything is being done to resolve the impasse.”

Reuters

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Solidarity has welcomed the announcement that ArcelorMittal South Africa (AMSA) has deferred the planned closure of its long steel plants in Newcastle and Vereeniging to later this year.

The union said this was a positive step to avert the immediate threat of job losses for thousands of employees. A total of 3500 jobs are on the line, and according to experts, thousands more will be lost in the manufacturing value chain.

The decision to defer the closures from April to the end of August 2025 follows a government loan of around R1,7 billion.

“Of course, we are most grateful that such an intervention happened, even though it required tremendous pressure from trade unions in particular for these steps to materialise,” Solidarity deputy general secretary for the metal and engineering industry, Willie Venter, said on Tuesday.

“We are very grateful that our members and the employees affected by the planned closure and retrenchments will now have temporary job security.”

Venter warned that the postponement was far from a real solution.

“In the time to come, the government and AMSA will have to engage in serious discussions to see if they cannot address some of the major problems such as those related to electricity supply and transport costs,” he said in a statement.

“We call on both parties to use this period to find sustainable solutions to the structural problems plaguing the industry. Simply using even more taxpayer money is not the answer.”

Challenges crippling the industry include high electricity costs and rail freight rates, the dumping of cheap steel and the ban or restrictions on the export of scrap metal.

Venter said these issues affected the entire steel and engineering industry, and that a “golden mean” between primary metal producers, smaller producers and downstream manufacturers would have to be found.

AMSA, which has been in talks with the government about a relief package, announced at the end of February that it would cease long steel production by April after failing to get concessions on its demands.

The company wants lower freight rail and electricity tariffs, the imposition of import duties and the removal of a scrap metal export tax, which it argues gives its competitors – recycling mini-mills – an unfair advantage.

“The deferral of the wind down has accordingly been enabled by a facility provided by the Industrial Development Corporation of South Africa in the amount of 1.683 billion rand,” the steelmaker said in a statement on Monday.

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The Portfolio Committee on Employment and Labour has welcomed the government’s intervention and engagement with ArcelorMittal South Africa (AMSA) regarding the winding down of its long steel business, which could stop 3500 workers from being retrenched.

The Industrial Development Corporation and the Trade, Industry and Competition Department said this week that AMSA received R380 million in February 2025. This was in addition to the R1 billion working capital facility extended by the IDC in June 2024.

AMSA is facing several challenges related to weak demand, high energy and logistics costs, and competition from low-cost imports.

It wants to close its steel-making operations in Newcastle and Vereeniging.

The closures could lead to over 100,000 job losses due to knock-on effects in the manufacturing sector.

The committee received a briefing from the Department of Employment and Labour on Thursday.

It said on Friday it was appreciative of the cooperation between the departments of Employment and Labour and Trade, Industry and Competition and other role-players to secure the possible return of AMSA.

In a cautionary announcement to the market, AMSA said it was engaging with stakeholders to defer the wind down of the Longs Business.

It has warned through that without a deal on funding and related matters, the deferral is not feasible.

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The number of Americans filing new applications for unemployment benefits increased slightly last week, suggesting the labor market remained stable in March, though the outlook is darkening amid rising trade tensions and deep cuts in government spending.

Despite the low level of layoffs, more people are staying on jobless rolls longer compared to the same period last year. Economists say still-high interest rates and policy uncertainty are making companies cautious about increasing headcount.

“The data continue to tell a story of relatively few private-sector layoffs but limited employment opportunities for those who are unemployed,” said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.

Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 223,000 for the week ended March 15, the Labor Department said on Thursday. Economists polled by Reuters had forecast 224,000 claims for the latest week.

Claims have been bouncing in the middle of the 203,000-242,000 range this year, with layoffs generally staying low and hiring cooling off.

A separate program for unemployment compensation for federal employees (UCFE), which is reported with a one-week lag, still showed a marginal impact of the mass firings of public workers by President Donald Trump’s administration as part of an unprecedented push to shrink the government.

Labor analysts said the rapid firings led by tech billionaire Elon Musk’s Department of Government Efficiency, or DOGE, were in some cases being undertaken in ways that made it harder for laid-off workers to file for unemployment benefits.

“But the chaotic nature of the terminations has jerked federal workers through firings, reinstatements, and in-between statuses like ‘administrative leave,’ meaning many don’t show up as fully unemployed yet,” said Andrew Stettner, a senior fellow at the Century Foundation.

The government in court filings this week acknowledged that nearly 25,000 recently hired workers had been fired. A judge ruled their terminations were likely illegal, resulting in them being reinstated, though placed on administrative leave at least temporarily.

The dollar rose against a basket of currencies. U.S. Treasury yields fell.

SLOW BUSINESS FORMATION

Trump’s often chaotic tariffs campaign has hurt business sentiment, with economists saying policy volatility was making it harder for companies to plan ahead.

Aggregated credit and debit card data published this week by Bank of America showed a broad moderation in small business spending. The Bank of America Institute said the shift in sentiment and capital expenditures could slow new business formation and ultimately the small business labor market, the key driver of employment growth.

The Federal Reserve on Wednesday held its benchmark overnight interest rate in the 4.25%-4.50% range, in a nod to the uncertainty swirling around the economy. U.S. central bank policymakers, however, indicated they still anticipated reducing borrowing costs by half a percentage point by the end of this year.

Fed Chair Jerome Powell told reporters that “conditions in the labor market are broadly in balance.”

The claims data covered the period during which the government surveyed businesses for the nonfarm payrolls portion of March’s employment report. Claims rose moderately between the February and March survey periods.

The economy added 151,000 jobs in February. Data next week on the number of people receiving benefits after an initial week of aid, a proxy for hiring, could offer more clarity on the health of the labor market in March.

The so-called continued claims increased 33,000 to a seasonally adjusted 1.892 million during the week ending March 8, the claims report showed. Continuing claims were around 1.795 million a year ago.

The Fed projected the unemployment rate would rise to 4.4% this year, revised up from the 4.3% forecast in December.

Reuters

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ArcelorMittal South Africa said on Wednesday it is in talks with the government and other parties for funding that could delay the planned closure of its long steel operations.

The steelmaker said on February 28 that it would cease long steel production of fencing material, rail, rods and bars by April this year after discussions with the government failed to avert the loss-making plant’s closure.

“ArcelorMittal South Africa is engaging with stakeholders, including government, regarding funding and related matters to enable the deferral of the wind down of the long steel business, as well as regarding the interventions previously announced,” the company said in a statement.

The ongoing wind-down processes have not been stopped, it said, but was “being managed in a manner that accommodates ongoing funding discussions”.

“It should be noted that without agreement regarding the funding and related matters, the deferral of the wind down of the long steel business will not be feasible,” the company said.

Apart from seeking funding, ArcelorMittal has asked the government to remove an export tax on scrap metal, which it says gives an unfair advantage to recyclers. The company also wants the government to impose import duties and facilitate lower electricity and freight rail costs.

A spokesperson for South Africa’s industry ministry confirmed talks with ArcelorMittal and other industry players.

“Government is engaged on saving the jobs,” the spokesperson said by email.

The planned closure, announced in November 2023, was blamed on weak demand and persistent infrastructure problems.

It would impact 3,500 direct and indirect jobs, while also disrupting supply into the automotive components manufacturing sector as well as the mining, rail and construction industries.

ArcelorMittal South Africa’s long business’ operational loss doubled to 1.1 billion rand ($60.56 million) in 2024, from 600 million rand the year before.

The company reported a headline loss of 5.1 billion rand for the year ended December 31, compared with a 1.89 billion rand headline loss in 2023.

It said at the time the losses were driven by poor financial performance at its long steel business as well as low-cost steel imports, particularly from China.

Reuters

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The National Union of Mineworkers has issued a stark warning about the looming crisis of retrenchments in South Africa’s industrial and mining sectors, which could have devastating consequences for workers and their communities.

It has called for urgent government intervention.

NUM spokesperson Livhuwani Mammburu said on Wednesday that every worker supported up to 10 people and the retrenchments would affect thousands of lives.

He was speaking following that union’s national executive committee meeting.

“We call upon mining companies to stop outsourcing under the pretext of cost cutting. This is pure exploitation of workers and rather maximising profit at the expense of workers.,” Mammburu said.

One of the major concerns discussed was the 3500 jobs on the line at ArcelorMittal.

The situation threatens both the steel industry and the broader economy, with the NEC calling for urgent government intervention to address operational costs, transportation, and high export tariffs.

It is advocating for the reclamation of ArcelorMittal as a state entity to safeguard jobs and economic stability.

The union highlighted the ongoing retrenchments in the mining sector, particularly in ferrochrome production, where high tariffs and electricity prices have left South African producers unable to compete with China.

It urged the government to intervene through the departments of Mineral Resources, Energy, Trade, and Labour to protect jobs in Limpopo and the North West.

The NEC expressed concerns over Transnet’s inefficiencies, which have negatively impacted logistics for mining companies, highlighting that reduced rail capacity has forced an increased reliance on trucks which has contributed to road deterioration and rising accident rates.

“The NEC is concerned about the impact of Transnet’s dysfunctionality, which results in decreased production and often leads to retrenchment and worsening unemployment,” Mammburu said

The union stressed the need for government intervention, arguing that privatisation should not be the only solution.

While South Africa recorded its lowest-ever mining fatalities in 2024, with 42 deaths, the NEC stressed that even a single fatality is too many.

With over seven fatalities already recorded since the beginning of the year, NUM reiterated its call for mining companies to prioritise worker safety over profit.

The union urged the Mineral Resources Department to hold companies accountable for unsafe working conditions and to enforce stricter regulations.

The union has welcomed the government’s plan to appoint more labour inspectors to enforce compliance with labour laws, particularly in the construction industry.

It emphasised the need to eliminate corruption among inspectors and ensure workplace safety regulations were upheld.

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ArcelorMittal South Africa will cease long steel production by April this year after discussions with the government failed to avert the plant’s closure, the company said on Friday.

The planned closure of the loss-making long steel operations, blamed on weak domestic demand and competition from local scrap metal recylcing mini-mills and imports from China, is set to impact 3,500 direct and indirect jobs.

ArcelorMittal South Africa’s long steel operations produce fencing material, rail, rods and bars used in the construction, mining and manufacturing sectors.

The South African unit of world number two steelmaker ArcelorMittal SA said it would start shutting down its blast furnaces in the first week of March. The last steel will be produced in late March or early April, it added.

The final wind-down into care and maintenance will be fully implemented in the second quarter of 2025.

On February 6 the company unveiled a delay in the closure of long steel operations, citing talks with the government.

“The structural elements leading to the wind-down of the long steel business remain unaddressed despite extensive discussions,” it said in a statement.

“We were unable to avoid what will be a significant negative impact on the economy.”

ArcelorMittal South Africa wanted the government to remove a tax on scrap metal exports it said favoured recyclers. It also wanted the government to impose import duties and sought to negotiate lower electricity and freight rail costs.

Its operations loss from the longs business doubled to 1.1 billion rand ($59.46 million) in 2024, from 600 million rand the year before.

ArcelorMittal South Africa reported a wider 5.1 billion headline loss in 2024, from 1.89 billion rand the year before.

Reuters

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Solidarity has applauded the revived talks between ArcelorMittal SA and the government to address the looming closure of its steel plants, but it says the outcome of the discussions must be made public.

The union said on Friday that past secretive discussions has failed to benefit AMSA or its employees.

Solidarity’s Willie Venter said in a statement that AMSA’s presentation showed the dire financial position regarding long steel products in general.

“We understand that. Still, discussions about this and action should have taken place a long time ago to reposition the Newcastle and Vereeniging plants,” he said.

Venter emphasised that government intervention alone was not enough, and other areas which presented a long-term solution needed to be explored to salvage the plants and protect thousands of jobs.

“We also cannot rely solely on government intervention because if it helps at all, it will only be of value in the short term. AMSA must be transparent about its future plans.

“Solidarity and its members are taking the matter very seriously and we are not going to sit around and wait for 3500 jobs to be neutralised,” he said.

This development comes after the ArcelorMittal announced that it intended to close its long-steel plants in Vereeniging and Newcastle by the end of the month, following a year of unsuccessful and inconclusive discussions with the government.

Economic commentators have said that the abrupt shutdown for ArcelorMittal dealt a significant blow to South Africa’s automotive manufacturing sector, which relied heavily on the steel supplier.

The National Association of Automotive Component and Allied Manufactures (NAACAM) asserted that that AMSA’s departure would have far-reaching consequences, impacting the entire automotive value chain and affiliated downstream industries, ultimately threatening the competitiveness of South Africa’s domestic automotive sector.

“The automotive industry is a significant contributor of South Africa’s GDP and export revenues, with vehicles and components accounting for approximately 15% of total exports. Therefore, any erosion of the industry’s cost competitiveness would severely impair its global market viability,” said NAACAM.

According to Trade, Industry and Competition Minister Perks Tau, the government held a meeting with the Mittal family, the primary shareholders of ArcelorMittal, on the margins of the World Economic Forum in Davos, Switzerland.

“We have met with the Mittal family, chairman of ArcelorMittal, the three ministers, Minister of DTIC, Minister of Finance, Minister of Electricity and we have had a discussion and said how do we begin solving the problems that we have particularly in Vereeniging and Newcastle.

“How do we avert what could be a job blood bath, we are working around solutions. The president also met Mr Mittal, they have accelerated the discussion to find the solution sooner rather than later,” he said.

Talks between unions and AMSA management will resume next week, with updates expected on President Cyril Ramaphosa’s discussion with Lakshmi Mittal, ArcelorMittal’s executive chairman.

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