Macsteel Navigates Restructuring Process with Compassion and Legal Integrity

The process was initiated with a formal notice outlining the potential retrenchment of 360 employees. This difficult decision was driven by the sustained contraction of the South African manufacturing and engineering sectors—an industry-wide challenge that has placed immense pressure on operational sustainability.

In accordance with Section 189 of the Labour Relations Act, Macsteel embarked on a facilitation and consultation process that extended over 87 days—well beyond the legally prescribed 60-day period. This extended timeline reflects the company’s dedication to meaningful engagement and exhaustive efforts to explore alternatives to retrenchment.

Macsteel approached the retrenchment process with transparency and empathy. Voluntary Severance Packages (VSPs) were accepted by 253 employees, and several vacant positions were filled internally—substantially reducing the number of employees affected. While the company initially contemplated retrenching 13% of its workforce, this figure was drastically reduced through a rigorous and compassionate consultation process. Ultimately, only 39 employees—representing just 1.4% of the total workforce—received formal notice of retrenchment on 18 August 2025.

Macsteel has expressed deep regret over the necessity of any retrenchments, emphasizing that every possible measure was taken to minimize impact. The severance packages provided were fully compliant with the Labour Relations Act and aligned with the Main Agreement of the Metal and Engineering Industries Bargaining Council (MEIBC) for scheduled workers.

In response to a recent media statement issued by the National Union of Metalworkers of South Africa (NUMSA), Macsteel has chosen not to engage with the inflammatory language and factual inaccuracies contained therein.

Macsteel remains committed to ethical business practices and respectful treatment of all employees.