The stalemate between striking Numsa members and employers remains in place following further failed wage negotiations.

 

SEIFSA’s increased offer rejected

Employers represented by the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) recently approved a 10% wage increase for H-level employees in 2014, followed by 9% and 8% increases in 2015 and 2016 respectively, as well as an 8% increase for A-level employees in 2014 and 7% increases in 2015 and 2016 respectively.

The 10% adjustment for low-level employees at Rate H represented a 25% move for SEIFSA from its previous offer of 8%, while the move from the previous 7% to 8% for higher-level artisans represents a 14% adjustment.

The National Union of Metal Workers South Africa (Numsa) rejected this offer, maintaining its demand for a 15% wage increase, and a ban on labour brokers and the youth wage subsidy.

SEIFSA Chief Executive Officer Kaizer Nyatsumba said that the new offer was the very best that SEIFSA could make under these difficult economic circumstances, and it was sweetened by the fact that the federation’s members had agreed to take their demand for a 50% reduction of entry-level wages off the table.

“We are very deeply disappointed by this turn of events. After a long and heated discussion, the SEIFSA Council had finally come up with a very good offer that we were very confident would be acceptable to NUMSA. Regrettably, however, it would appear that we continue to be miles apart with the union as a result, among other things, of patently political demands about which we can do nothing,” said Nyatsumba.

He added that there was no way that employers in the metals and engineering sector, which is known for its peaks and lows, would accede to NUMSA’s demand to desist from ever using the services of labour brokers.

 

NEASA talks fail

The National Employers’ Association of South Africa (NEASA) has also failed to produce a solution to the current deadlock in the metal and engineering industry. The association met with NUMSA following the union’s meeting with SEIFSA last week.

At this meeting NEASA confirmed to NUMSA its current position; that any wage offer is subject to an agreement on the establishment of a reduced entry level wage, in respect of new entrees, as well as the adoption of measures to make the industry more flexible.

NEASA Chief Executive Gerhard Papenfus expressed disappointment following the talks. “NUMSA does not even want to discuss these issues. Without an agreement on these NEASA proposals, we simply cannot see our way open to offer any wage increases,” he said.

NUMSA recently pointed out that the Metal Industry has lost 250 000 jobs during the last five years. The association has highlighted the extreme urgency of job creation and the establishment of flexible measures that will help the creation of jobs in South Africa. However, Papenfus said this seems inconsequential to NUMSA through its demands and actions.

 

Industry no longer competitive

“The metal industry is no longer competitive; we are not creating any new jobs. In this regard we are failing South Africa. This industry is in the process of decline and will eventually be destroyed unless we considerably adapt the current Industry wage model,” Papenfus said.

“Products which used to be manufactured in South Africa are now manufactured elsewhere. We are exporting jobs. Merely giving a high increase, without addressing the fundamental reasons inhibiting growth and employment, will be irresponsible.”

NEASA believes that if NUMSA continues muscling employers into deals which they cannot afford, the decline and eventual destruction of the Industry will be expedited.

“Unless we find ways to break the chains on this Industry, as NEASA is proposing, the future of manufacturing in South Africa is bleak. We will not be party to any agreement responsible for the further destruction of the Industry,” said Papenfus.

 

Numsa lashes out at employers

“The employers, instead of negotiating in good faith have demonstrated their exploitative and neo-liberal approach in this round of bargaining by insulting us with an initial offer of a 50% wage cut. This approach from employers clearly seeks to reverse the hard won gains that we have registered through collective bargaining,” Numsa said in a statement.

The union believes that SEIFSA, NEASA and Boarder Industry Association (BIA) are “hell-bent on retaining and perpetuating the colonial apartheid wage income disparities.” Numsa has demand that bosses in the engineering sector disclose their financials in order for the workers to better understand the financial position of the engineering employers and has resolved that to strike until its demands are met.

 

Government to get involved

The Department of Labour’s ministerial team has announced that it will meet the leadership of Numsa for talks to end the wage strike.

“The ministerial team will meet Numsa today and employers agreed to keep communication lines open in case there is a need for urgent consultation,” said labour spokesperson Mokgadi Pela. Pela is cautiously optimistic, saying she does not want to raise expectations but that it is possible that an agreement could be met.