The indefinite wage strike by SA's largest union, the National Union of Metalworkers of SA (Numsa), has cost workers R100m in lost wages, employers said on Monday.
Numsa, which has a membership of about 432,000, downed tools last week and embarked on a strike in support of its demands for above-inflation wage increases in the embattled steel and engineering sector.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa), the sector’s largest employer body that represents 18 organisations employing 170,000 workers, struck a conciliatory tone last week after Numsa kicked off its industrial action, saying it wanted to urgently reach an agreement because a strike and lockout would not solve the dispute.
Seifsa said last week that a meeting would be held with Numsa's leadership with a view to reaching a wage deal and for workers to return to their posts.
On Monday, Seifsa CEO Lucio Trentini said: “We are waiting for official feedback. We understand that collating of inputs from various regions and branches took place across the country over the weekend and we now wait for urgent word.”
Until such feedback is received, “strike and lock out action continues into today, the fifth day of industrial action,” he said.
“We will see the impact on manufacturing once the manufacturing figures are released tomorrow [Tuesday], thus far we have estimated that in excess of R100m has been lost in wages,” said Trentini.
Numsa national spokesperson Phakamile Hlubi-Majola said the union was “deliberating on the proposal” made by Seifsa. She would not say what the proposal entailed.
“We are still receiving feedback from the regions with regards to how they feel about it and whether they accept it or reject it,” she said, adding that the strike, so far, “has been very effective”.
“In the meantime the strike continues. The strike will only end once we have actually signed an agreement, and that is the way forward.”
Numsa is demanding a one-year, 8% wage increase across the board and consumer price index (CPI) plus 2% for the second and third years. If CPI falls below 6%, it wants employers to offer 6% or reopen wage talks.
Numsa has rejected Seifsa's proposal for a 4.4% increase in 2021, and inflation-related increases in 2022 and 2023. The SA Reserve Bank forecasts inflation of 4.2% and 4.5% for 2022 and 2023, respectively, around the midpoint of its mandated 3%-6% target range.
The sector, which has been a victim of declining prices due to an increase in cheap imports, accounts for about 1.5% of GDP and employs about 190,000 people.
In the days leading up to the strike, Seifsa had warned that the industrial action would have an impact on crucial economic sectors such as mining, automotive, steel, and construction.
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