The Department of Employment and Labour Deputy Minister, Mr Jomo Sibiya, says the Department's blitz inspections are not a fault-finding mission to close down businesses.

The Deputy Minister was speaking during an advocacy session and a follow-up inspection, which was led by the Department's Inspection and Enforcement Services (IES) branch along with the Rand Mutual Assurance (RMA) for both employers and employees at Hangda Steel in Thaba Nchu, Free State.

Deputy Minister Sibiya and the Department inspectors had closed down Hangda Steel Factory in Thaba Nchu following non-compliance, where the steel factory on Saturday, 23 August 2025, around 20:00 until 2 am on Sunday, 24 August 2025, was found with very disturbing conditions that workers were exposed to.

The Deputy Minister was shocked by the level of non-compliance, as it was extreme. The Basic Condition of Employment Act, Unemployment Insurance Act, Occupational Health and Safety, and National Minimum Wage were all not complied with. Prohibitions and notices were issued.

And also, seven illegal Chinese immigrants were arrested during the operation. The Deputy Minister stated that they must balance the interests of both business and workers.

The steel factory was widely featured in the media for its ill-treatment of employees and forcing them to terminate membership in unions they had joined.

Today's advocacy session engagement was meant to:

-         Provide feedback on inspection outcomes and the issued compliance orders, contravention, and prohibition notices.

-         Assess progress made in addressing identified areas of non-compliance.

-         Educate employers and workers on their rights and obligations under South Africa's employment legislation; and

-         Engage directly with workers to hear their concerns and evaluate improvements on working conditions following the Department's intervention.  

Deputy Minister Sibiya said the Department's commitment was to better working conditions and compliance with Labour Laws.

“For us to come today is because we have a responsibility and a duty as government. We are here because we have a responsibility that we must take, and there are issues in this company. We are reaching out to the company, trying to assist this company.

We have a duty as the state to make sure that we bring together everyone, and where there are challenges, we make sure that we resolve those challenges in the best interest of everyone (the workers, the company, and the state)," said the Deputy Minister. 

According to the Deputy Minister, there were still issues that needed to be dealt with, and he had visited the factory to see if there was a change in the company, and said, “We are seeing there is a change in the company".

“We want to see that the picture is complete. At the end of the day, we don't just go to do inspections in companies just because we want to close them down. Our main aim is for the company to comply, and that's why we have been walking this journey, because we want to assist.

“Now I am starting to see the workers wearing proper PPE (Personal Protective Equipment), and that is an improvement, but don't take us badly. We came here deliberately to make one story about this company for the country where people can see how things can be turned around when the employer, employees, and the state work together for the interests of all," said the Deputy Minister. 

Deputy Minister Sibiya said the Department's work to resolve issues with the company was beginning to bear fruit; if there are still some challenges and then they would together find an amicable way to deal with those challenges.

“We are not in a fault-finding mission; it's about compliance, as we are a country of laws. Our common goal is for this company to comply. We want to see the company improving from the conditions that we found it in to a better, particular state.

“We don't want to come here every time. We want to leave you working and doing what you do best. But, all of us knowing that whatever is happening in this company is within the ambit of the law and that's all that we want," he said.  

For media enquiries, please contact:

Teboho Thejane

Departmental Spokesperson

082 697 0694/ teboho.thejane@labour.gov.za

-ENDS-

Issued by: Department of Employment and Labour

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