ArcelorMittal drops 'quota system' for new jobs

(iStock)
(iStock)

Cape Town - ArcelorMittal has withdrawn a policy giving 100% preference to certain designated groups when making external appointments.

This after trade union Solidarity threatened the steel giant with legal action in a cautionary letter.

ArcelorMittal notified all employees in a letter earlier this month that 100% preference would be given to certain designated groups when making external appointments in future.

“ArcelorMittal’s decision to adopt this policy with immediate effect is not in line with the Employment Equity Act (No 55 of 1998), and basically amounts to a quota system and job reservation which are prohibited by the Act,” said Marius Croucamp, deputy general secretary of the steel industry at Solidarity.

He said that Solidarity acted on behalf of its members at the company and warned the company that if it does not amend its appointment target, it would be facing court action.

“Consequently, ArcelorMittal has withdrawn the policy in terms of which 100% preference was to be given to designated groups. This in itself is a victory for ArcelorMittal’s employees,” said Croucamp.

He added that the trade union would still play a watchdog role to ensure that ArcelorMittal adhere to the principles in the Employment Equity Act.

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