STEEL INDUSTRY: IMPACT OF TARRIFS ON THE DOWN STREAM INDUSTRY Marius Croucamp, Deputy General Secretary Soldarity: Metal and Engineering 28 July 2016

Solidarity - Metal and Engineering Industry 28 000 members in this industry Membership in 2500 companies 2nd Largest trade union in the industry Major Role Player in the Metal Industries Bargaining Council (MEIBC) Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Industry in Distress 11 000 job losses in the industry in 2015. Solidarity represented members in 129 major retrenchments in 2015. 700 retrenchment consultation meetings attended in 2015. The Training Layoff Scheme (TLS) failed to produce the desired outcomes. Imports of steel products increased and local production reduced. We lost Evraz Higveld Steel which was a major blow to the primary industry. Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Complex Situation PROUDLY SOUTH AFRICAN Primary steel manufacturers are bleeding because the value adding industry is importing their base products and materials. However, the value adding industry is also struggling against cheap imports. The entire industry is at risk of collapsing. More should be done by Government and role players to stimulate local procurement. Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Solidarity’s view and policy In principle, Solidarity does not support import tarrifs in a free market, BUT The South African Steel Industry is subjected to unfair trade and market forces. Chinese steel imports and dumping is uncontrolled and not fair trade. The local steel industry is not sufficiently protected at primary and downstream level. Steel imports are at 70% of local consumption. The designation and localisation of local steel products falling short of what is required to sustain the industry. Therefore, Solidarity support measures that protect the South African steel industry and its communities, both at primary and downstream level. Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Economic ecosystems - The primary industry is the lifeline of industry sustained communities. These communities are ecosystems dependant on the steel industry for survival. Vaal Triangle: 66% of employment sustained by the steel industry. Newcastle: 66% of employment sustained by the steel industry. Saldanha: 25 % of employment sustained by the steel industry. When Evraz Highveld Steel closed down 2200 jobs were lost directly and another 13 000 jobs affected on the downstream and suppliers side in Witbank. Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Impact on the downstream industry Solidarity is not aware of job losses in the downstream industry as a direct result of tarrifs. Steel Crisis Committee Was set up in 2015 to deal with the crisis in the primary industry. Members included leadership of primary producers, trade unions and industry associations. A 10 point plan was presented to government which included tarrifs as a measure. The focus was on the primary industry that was in crisis. More should now be done by the primary industry to reach out to the downstream industry in an effort to work on problems and solutions. Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016

Thank You Impact of Tarrifs on the Down Stream Industry – Marius Croucamp 28 July 2016