A strike in SA’s metals and engineering sector entered its eighth day on Thursday after the National Union of Metalworkers of SA (Numsa) rejected employers’ revised pay offer.
“I have been told that Numsa rejected Seifsa’s revised offer of 6% for lowest-paid workers and 5% for highest-paid workers last night [Wednesday],” Gerhard Papenfus, CEO of the National Employers Association of SA (Neasa), which represents 1,800 businesses employing 65,000 workers, told Business Day.
He said Neasa had proposed a one-year 4.28% wage increased which Numsa turned down last week. “Now, 79% of our members said there should be no further offer to Numsa. It serves no purpose to continue giving them offers,” Papenfus said. “What’s going to follow now is a conciliation process that will be facilitated by the CCMA [Commission for Conciliation Mediation and Arbitration], which will happen very soon.”
Lucio Trentini, CEO of the Steel and Engineering Industries Federation of SA (Seifsa), which represents 18 organisations employing 170,000 workers, confirmed Numsa had rejected its revised three-year offer, and said it would Seifsa will hold a briefing at 11am on Friday.
“For a general labourer the total cost to company moves to a minimum of R12,734 per month,” Trentini said in a statement. “Given the current economic and trading conditions and economic date tracking the performance of the sector over the last 24 months, we believe the improved offer is more than fair, equitable and sustainable.
“The longer the posturing and refusal to close continues, the more jobs will eventually be lost, in an industry which should be doing everything possible to protect each and every job in the sector.”
The impasse between Numsa, with about 432,000 members, and Seifsa arose when after a three-year wage agreement ended in June. Numsa initially demanded a one-year, 15% pay increase across the board but in August revised it down to 8% after declaring a dispute at the Metal and Engineering Industries Bargaining Council (MEIBC).
The union 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 to average 4.4% in 2021 and 4.2% and 4.5% for 2022 and 2023, respectively, near the midpoint of its mandated 3%-6% target range.
Update: October 14 2021
This story has been updated with comment from Seifsa and background information
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.