The influence of steel import tariffs on employees in the South African steel manufacturing industry
Abstract
Steel is paramount to the functioning of the modern world. Over the last couple of years, the global steel industry has witnessed a significant increase in steel export from China, due to the lowering of local demand and excess supply. China subsidises their local steel industry, and this enables the manufacturers to export the excess steel at reduced costs. The South African local steel industry has experienced the consequences of the importation of Chinese steel. As a result, the local steel industry is under pressure as many role-players have ceased operations due to financial constraints and large numbers of individuals are now unemployed. The South African Government implemented import tariffs and anti-dumping duties (tariffs and duties) on certain imported steel products in an attempt to provide some form of relief for the local steel manufacturing industry. Research reveals that, the impact of tariffs and duties have had on other countries, but the impact on the South African market is yet to be tested. A further aspect that requires research is the impact the implementation of the tariffs and duties had on employee stress levels and turnover intentions. As the steel manufacturing industry is under pressure, it can only be assumed that the people employed are stressed due to uncertain futures and might be considering leaving the industry in the search for more stable employment opportunities. The primary research objective aimed to determine whether the implementation of the tariffs and duties affected employee stress level and turnover intentions. The secondary research objective of this study was to determine whether individuals employed in the local steel manufacturing industry are aware of and understand what tariffs and duties are. An additional secondary objective of the study was to determine whether there are other aspects, which were derived from the available literature that affected employee stress levels and turnover intentions. The research population was individuals employed in the local steel manufacturing industry. A research questionnaire was developed and circulated to a sample of 1 000 employees, of which 190 responses were received. The responses were collated into a single data sheet and were provided to the Statistical Consultation Services of the North-West University for statistical analysis. The statistical analysis confirmed the validity and reliability of the questionnaire. An exploratory factor analysis was performed to group the question into constructs as a data reduction method. Cronbach's alpha determined that the constructs were reliable. Tukey's honestly significance difference (HSD) test was used to compare constructs to identify any significant differences. The study found that 98% of employees were aware of the tariffs and duties and 96% were aware that it had been implemented. The study further found that employees indicated to understand what tariffs and duties are and they did not require additional information on the topic. According to Tukey's (HSD) test employees with a grade 12 or less qualification had a lesser understanding of tariffs and duties compared to employees with a postgraduate qualification. The paired t-tests found that the implementation tariffs and duties did not have a practically significant effect on employee stress levels and turnover intentions. The study found that company performance and remuneration had the largest effect on employee stress levels and aspects related to work output reward (also includes remuneration) had the largest effect on employee turnover intention. It appears that the implementation of tariffs and duties could have an indirect effect on employee stress levels and turnover intentions, as tariffs and duties directly affect company performance and work output reward which in turn directly affects stress and turnover intention. In conclusion, the study achieved its primary and secondary research objectives, and recommendations for future research have been included in Chapter 5.