A spokesperson for the National Union of Metalworkers of South Africa (NUMSA) has issued a stark warning, stating that the country’s “jobs bloodbath” will continue to worsen unless the government abandons its “neoliberal” economic policies and directly intervenes to lower the crippling cost of energy for industry.
In a television interview, NUMSA spokesperson Phakamile Hlubi-Majola expressed the union’s deep concern over the ongoing job losses, which she described as a reflection of the continued de-industrialization of the country’s manufacturing sector.
“Manufacturing has the potential to create the highest number of jobs, higher certainly than the financial sector or any other sector,” Hlubi-Majola stated. “But because of government’s insistence on neoliberal economic policies which have shown us that they are failing… we are going to continue to see a worsening of these types of conditions.”
The union directly linked specific, imminent job losses to the high cost of electricity. Hlubi-Majola cited the cases of Glen Core and Alma Investments, which are facing over 2,100 job losses, and ArcelorMittal South Africa, which plans to shut down its long steel division, threatening a further 3,500 jobs.
“All of these companies that I’ve just mentioned, these are high energy-intensive companies. All of them have cited the extremely high cost of energy and Eskom tariffs in particular as playing a direct role in why their cost of production is so high,” she said.
Hlubi-Majola pointed to China as a counter-example, where she said state intervention ensures cheap energy for manufacturing, making the country globally competitive. She criticized the current path of introducing private players into South Africa’s energy market, arguing it has directly contributed to high costs.
“So why then are we not cancelling privatization, ensuring that Eskom is well-run… and ensure that the tariff is kept low so that it’s really cheap and makes it competitive for corporate and business… to actually invest in South Africa,” she questioned.
The NUMSA spokesperson revealed that while the Minister of Electricity had met with smelter companies and an agreement was reached to reduce Eskom tariffs, the government has failed to implement the decision.
“Government has not actually implemented that decision and they’ve really, really delayed,” Hlubi-Majola said. “We don’t understand why government is dragging its feet. A decision has been taken. They know objectively speaking that these costs are tied to high job losses.”
Beyond the energy crisis, NUMSA is advocating for more protectionist industrial policies. The union is demanding a ban on the export of raw chrome ore and manganese so that these materials can be processed locally, a practice known as beneficiation.
“China buys our chrome ore at extremely high levels… in its raw form and then they transform it into finished product,” she explained. “Instead of us doing that, China is doing that and therefore benefiting.”
Hlubi-Majola concluded by asserting that countries that have abandoned neoliberal policies, such as China, Mexico, and Brazil, have seen significant improvements in living standards for their people. She accused the South African government of being in denial about the policy’s failure, leading to the collapse of key industries and public services.
The union’s comments highlight growing tension between organized labor and the government over economic policy, as major employers continue to close or scale back operations, citing unsustainable operational costs.