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Iscor disputes Solidarity claim of a retrenchment moratorium
August 18, 2004
By Mokgadi Pela
Johannesburg - Ispat Iscor, Africa's biggest steel maker, has denied claims by its biggest trade union, Solidarity, that a moratorium on all retrenchments had been agreed on.
Solidarity said yesterday it had signed a three-year agreement outlawing involuntary retrenchments but Iscor management said no such deal had been struck.
Solidarity has a membership of 4 500 out of a total workforce of 13 000 at Iscor. Most of its members are technicians and artisans.
Iscor spokesperson Phaldie Kalam said: "We could not agree to stop retrenchments as we cannot predict the future. We have adopted the principle of voluntary and natural attrition to achieve world-class productivity.''
The company said it would need to take several performance-related measures within the next three years to meet the challenges of the global steel industry.
Chief executive Louis van Niekerk said: "While the steel industry is enjoying a surge, the impact of the strong rand and the growth in Chinese steel production will affect the South African steel producer negatively.''
He said while the company had undergone significant operational improvements over the past 10 years, it could not afford to be complacent and lose international competitiveness.
"We believe we need to take the company to further improved levels of performance by focusing on costs and improvement opportunities.''
Solidarity's chief executive, Flip Buys, was "shocked" at Iscor's turnaround and said "somebody needs to explain this".
"Today job security is as important as wage increases," he said.
"That is why we found it so important that a moratorium on retrenchments had to constitute part of the wage settlement. A constant threat of retrenchment harms productivity and creates tension within the workforce."
The trade union and Iscor have been battling over the question of retrenchments for over a year and the union appointed a commission of inquiry into retrenchments a year ago.
The commission concluded that Iscor did not have a "reasonable'' rationale for wanting to retrench.
Over the past 10 years Iscor has laid off more than 30 000 workers.
Solidarity opposed the Iscor take-over by LNM Holdings, owned by Lakshmi Mittal, arguing that Mittal had a history of retrenchments.
A month-long wage dispute ended yesterday in a three-year agreement granting workers an 8.5 percent increase comprising a 5 percent fixed and 3.5 percent variable element.
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