The National Union of Metalworkers of South Africa (NUMSA) urged the government to implement an aggressive industrial blueprint to reposition the country’s manufacturing base. 

In a press briefing by General Secretary Irvin Jim on Monday in Johannesburg, the union called for higher tariffs on automotive, tyre, steel, and engineering sectors, stringent procurement rules to boost localisation, and decisive steps to curb imports and unfair practices.

NUMSA’s stance comes as fears of deindustrialisation and mass retrenchments loom over a sector that has struggled with competition from cheaper imports and policy gaps. 

The union proposed immediate protective measures and a longer-term strategy to strengthen local content and investment.

“Given that National Treasury has already passed the Public Procurement Act to support manufacturing and industrialisation, it is essential that National Treasury move swiftly to introduce public regulations to implement this Act,” Jim said, framing procurement reform as a crucial lever for localisation and designation.

NUMSA’s plan reflects urgent fears of deindustrialisation and retrenchments, pairing immediate protective measures with a longer-term push for local content and investment.

Key elements of NUMSA’s position include Tariffs and Localisation standards.

The union reiterated calls for tariffs across core sectors and “clear standards for homologation.” It highlighted the tyre-dumping crisis and urged a ban on tyre and carbon black imports, while pressing for standards that ensure domestic job creation and value added.

Jim argued that the state must use procurement to drive localisation, urging foreign brands seeking market access to establish assembly plants in South Africa and employ local workers. 

He cited data showing 65% of local-market vehicles are imported with zero local content to underscore the need for policy incentives that reward local manufacturing and living-wage jobs.

NUMSA urged SARS to crack down on transfer pricing and profit shifting, contending that such practices drain the fiscus and undermine incentives meant for job creation and local industry.

In steel, NUMSA called for stronger protection of primary production, including measures against cheap imports. 

The union pointed to July 2024–January 2025 data showing 1.4 million tons of steel imported, with some importers securing refunds that harmed local producers. Retrenchments were highlighted as a direct consequence of policy gaps.

The briefing linked current challenges to a neoliberal agenda and called for urgent energy reliability as part of a broader industrial strategy. “Eskom’s ongoing crisis and load-shedding are described as persistent threats to manufacturing competitiveness.

The union framed government intervention as essential to “protect what remains of our manufacturing base,” including efforts to support distressed plants such as Goodyear’s Kariega facility and demand accountability across government and industry levels.

NUMSA also pressed for accelerating localisation to 60% in production while continuing to pursue export opportunities. Jim warned that deindustrialisation is underway and urged the government to couple incentives with tighter local content and designation conditions.

“The risk of deindustrialisation is no longer a distant threat; it is a reality we are already facing,” Jim said, calling for a comprehensive industrial strategy that prioritises job creation, economic justice, and robust public-sector leadership of critical sectors.

thabo.makwakwa@inl.co.za

IOL Politics

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