The T&T Manufacturers’ Association (TTMA) supports government’s decision not to purchase the ArcelorMittal steel plant.
TTMA president Rolph Balgobin said it is a bad idea to nationalise a company to save jobs.
“If these companies are not themselves sustainable they simply become an escalating drain on the State. Our unemployment rate is still low and there is the possibility that the displaced employees can be absorbed elsewhere in the economy,” he said.
On the issue of severance benefits for the displaced workers, Balgobin said Government should act to seek their best and ensure the laws of T&T are adhered to.
In a statement yesterday, Balgobin said job losses cannot be prevented since it is a part of the ongoing cyclical arrangements which comes with a free market economy.
“Government can and should seek to help those displaced find work elsewhere by making labour markets transparent.
The Government also has to ensure that it creates the kind of environment which would encourage confidence and entrepreneurship so that there is demand for specialist skills,” he said
The TTMA leader, a former president of the Plipdeco, said the port may be affected if the value of the rent paid by ArcelorMittal is substantial.
“Plipdeco would presumably get back the lands which can then be leased to new tenants,” he said. ArcelorMital announced that it was shutting down its T&T operations after accumulating huge debts due to the impact of market conditions on its global operations.
The company’s global financial statements for the period ended December 31, 2015, show that steel exports from China had increased and this had affected its international operations.
“While the majority of these exports are directed to Asia, an increasing proportion is being directed toward ArcelorMittal’s core markets and Europe, in particular.
“While not a sustainable long-term strategy, Chinese exports in 2015 were increasingly being sold at prices apparently below cost.
China Iron and Steel Association (CISA) reports large and medium-sized CISA mills losing US$8.6 billion from January through November 2015—negatively impacting prices and therefore margins in many regions,” the company said in its financial reports.