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Business Report writes that Gerhard Papenfus, CE of the National Employers’ Association of SA (Neasa), has thrown down the gauntlet to government to review its decision to cushion ArcelorMittal SA (Amsa) against cheap Chinese steel imports through tariffs.
In a letter to government he argues that there should be a better solution to introducing tariffs and that their introduction posed a much bigger threat to the downstream manufacturing sector, which is a major employer. Amsa, which has not posted a profit since 2010, blamed its financial woes on the imports of cheap Chinese steel and had repeatedly pleaded with the government for protection. “When you increase the price of product the less people buy it. Eventually this will push small business out of business, and lead to job losses,” Papenfus said. He noted that the Metal and Engineering Industries Bargaining Council (MEIBC) has reported that the steel industry has lost 150,000 jobs over the last 10 years, of which 40,000 jobs were lost in 2015 and 9,000 in November 2015 alone. The MEIBC is predicting a further 30,000 job losses this year.
- Read this report by Dineo Faku in full at Business Report
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