STEEL INDUSTRY

THE ANC, AMSA, ITAC and DUTIES

THE FOUR HORSEMEN OF THE DOWNSTREAM APOCALYPSE

How do the import duties affect your business?

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A REAL-LIFE SCENARIO OF AN EMPLOYER IN THE STEEL DOWNSTREAM

Dear employer

• In 2015, a steel company, ABC Pty Ltd, found itself in a very strong financial position.

• At that point this company employed 140 employees.

• With a view to expand, additional properties were bought, as well as high-tech machinery.

• If this plan realised, the workforce would have increased to 350 employees.

• It was at this stage that the initial AMSA-requested import duty of 10% was implemented by ITAC.

• This duty in itself, led to the company placing its expansion plans on hold and with it the opportunity to employ more employees.

• In 2017, increased duties, totalling 22%, led to the export division of the company gradually closing down, as they could no longer compete internationally, which resulted in the company retaining only 82 employees.

• The recently announced duties of 52% will result in the workforce of the company being further reduced to 50 employees.

For more information

NEASA Media Department

media@neasa.co.za

NEASA ... the only labour law specialist an employer will ever need.