1.3.1 Measures to compensate for the fact that most domestic consumers are located in inland provinces and much scrap metal is located at the coast. 1.3.2 The right for domestic consumers to weigh and inspect the materials to ascertain that material delivered is the same quality, type and weight as agreed to when the offer was made and concluded, and the right to claim reasonable compensation for costs incurred where quality, type and weight differ from what was agreed. 1.3.3 Increased surveillance by ITAC to ensure that materials (quality, grades and quantities) comply with the approved permit, including the right to take legal action for any misrepresentation from sellers. 1.3.4 Ensuring that scrap dealers have adequate facilities for the access, loading and weighing of scrap; failure to provide these will be seen as an impediment and constitute grounds for refusal of a permit application. 1.3.5 The export of scrap in containers is alleged to be a problem. The industry has offered to pay for and provide tilting equipment to SARS at the ports to unpack, check and repack all containers of scrap. ITAC are looking into break-bulk export of scrap, given SARS’ resource constraints. 1.3.6 The price paid by domestic consumers should be adequate to provide an incentive for the recycling industry to collect and process scrap. This inflection point should be determined and updated regularly by the dtic in consultation with the consumers and recyclers. Iron ore, coal and other raw materials. Industry sources outside AMSA estimate that the loss of the developmental price from Kumba for iron ore has cost AMSA about R10 billion to date. The Minister for Mineral Resources and Energy has extensive powers in terms of the Mineral Resources and Petroleum Development Act to specify conditions for the beneficiation of minerals and it has been proposed that the industry approach the Minister for Mineral Resources and Energy to consider setting terms for the provision of iron ore and coking coal to steel producers. The process should start by determining a fair and sustainable steel price which will assist downstream processors to be competitive, and then working backwards to the input costs. The dtic will request that discussions be initiated between DPE and DMRE with Kumba, Glencore, Exxaro, Eskom and Transnet to explore developmental prices, conditional on the benefits being passed downstream and subject to enforceable undertakings on investment. Mechanisms to ensure that the benefits are passed downstream could include the establishment of a fund to incentivize value-added production, which receives all or part of the difference between the current prices of ore, coal etc. and the developmental prices. The Competition Commission has supported this approach. 1.4 Unit labour costs must be managed to ensure the industry is able to effect a turnaround, within a broader decent work agenda. There is a three-year wage agreement in the industry. The unions (Solidarity and NUMSA are the largest unions) have agreed to postpone new negotiations until July 2021, in view of the dire situation in the industry. Further discussions on the role of the unions in the survival and growth of the industry will take place in the context of the Master Plan. Key issues concern the role of the unions in making the industry competitive, innovative and outwardly-orientated. The professionalization of the industry, the advancement of workers, career paths and the retention and growth of jobs will be focus areas for discussion. NUMSA has proposed that the Steel Oversight Council discuss various options, including worker participation in company ownership. There are many existing schemes in various industries. 1.4.1 NUMSA also notes that it supports the continuous revolutionising of productive forces and that the industry must keep pace with development and global trends and continue to be on the cutting edge of the Fourth Industrial Revolution. However, the choices made in advancing technology must take into account South Africa’s concrete realities of poverty, unemployment and inequalities. Options do exist and there are case studies in the steel converters and mills which contrast technology which is locally developed and allows decentralised localisation and technology which is imported and highly centralised.
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The South African Steel and Metal Fabrication Master Plan 1.0
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