The National Union of Metalworkers of SA (Numsa) has inked an agreement with Bell Equipment to convert 100 contract workers into permanent employees, days after they threatened to strike and shut the group’s Richards Bay plant and its Boksburg head office.
But this does not mark the end of the impasse as the conciliation process at Bell continues, according to the union, which said all other demands are to be discussed by the executive management at a board meeting on August 15.
“Numsa welcomes the agreement between itself and the management of Bell Equipment, where it has been agreed that those workers who have been exploited by labour brokers for more than 10 years, will be made permanent employees with immediate effect,” Numsa general secretary Irvin Jim said.
“This agreement means that they will receive medical aid and improved provident fund. This will fundamentally change the lives of these workers by upgrading and improving their quality of life. They now have job security and they will be able to raise their families with dignity,” he said.
With a market capitalisation of just over R1.4bn on the bourse, Bell employs more than 3,500 people and owns a principal manufacturing plant in Richards Bay that boasts a capacity of 5,000 machines a year and supplies Africa and Asia with trucks, hauliers, loaders, tractors, backhoes and custom-made equipment.
The manufacturer and distributor of heavy-duty equipment and articulated vehicles also owns 20 branches nationwide.
SA’s largest union, with more than 300,000 members, has been at loggerheads with the industrial heavy machinery group over nonpayment of bonuses, and exploitation of workers through labour brokers.
The union and Bell deadlocked and engaged in conciliation through the CCMA.
Numsa has lamented that workers employed through labour brokers have been temporary employees for 10 years or longer despite the law stating that workers can work through labour brokers for only three months.
Additionally, those employed through the broker system earn almost half of what permanent employees earn, and are unable to access basic financial services such as home loans, vehicle financing and even cellphone contracts because they operate on a month-to-month contract.
This is against the backdrop of Bell’s top three executive directors, including CEO Leon Goosen, financial director Karen van Haght and chief strategy officer Avishkar Goordeen, receiving total remuneration of R15.1m for 2022.
Demanding the insourcing of workers, a housing and transport allowance and R2,000 in untaxed bonuses for member employees, Numsa last week threatened to strike.
Now the union says the board committed to the commissioner of the Metals and Engineering Industries Bargaining Council (MEIBC), who is responsible for chairing the conciliation process, that they will meet for another engagement with the union on August 15 to give feedback on the additional demands.
“We call on the management to put a meaningful offer on the table because, as things stand, the dispute remains active, which means, if workers are not happy with the offer, they can still resort to a strike,” said Jim.
Union spokesperson Phakamile Hlubi-Majola told Business Day that though Numsa is participating in the conciliation process, she cautioned that if the conciliation fails, the union will have the right to seek a strike certificate.
In the year to December, Bell grew profits by almost two-thirds amid robust demand from the mining industry while also maintaining a record order book.
The board declared a final dividend of 90c, totalling a payout of about R86m.
Bell Equipment shares closed 1.67% lower at R14.75 on Friday, having climbed more than 23% over the past year of trade.
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