The National Union of Metalworkers of SA (Numsa), the country’s largest trade union, says it is mobilising for the “mother of all strikes” at ArcelorMittal SA (Amsa), Africa’s largest steelmaker.
This comes after the union, with more than 400,000 members, and Amsa reached a deadlock during pay talks on April 5.
Numsa general secretary Irvin Jim said that the union’s members were on the “verge of a strike” in the steel sector, which contributes about 1.5% of GDP and employs almost 200,000 people.
“Numsa is the majority trade union representative within Amsa nationally, and we will be embarking on the dispute resolution process, which may lead to a full-blown strike if Amsa management does not make a meaningful offer to settle this round of wage talks,” Jim said in a statement.
Numsa is demanding a one-year 15% pay increase across the board, while the employer has offered 6%.
In May 2022, Numsa and Amsa signed a one-year deal for a 6.5% pay increase across the board.
This was after union members downed tools at all Amsa plants in the country in support of their demands for an inflation-beating increase of 10%, while the employer initially proposed a 5% increase.
For the 2023 pay negotiations, Jim said parties reached consensus on March 27 for a 2% increase in employer contributions on the pension fund, and for 70% and 80% contributions on medical aid in 2024 and 2025, respectively; 90-day paternity leave per occurrence; and a R20,000 increase for funeral benefits.
Jim said that the union was “disgusted” by Amsa’s “decision to withdraw the 2% pension fund increase and the proposed 70% and 80% contribution on medical aid for the second and third year, respectively”.
“We view this decision as divisive and provocative which has the potential to cause industrial action,” said Jim.
‘Blackmail’
“Amsa withdrew the 2% increase on the pension fund and also withdrew the medical aid contribution due to the fact that we did not accept their proposed 5% wage increase. We view this as a form of blackmail, and we reject it with the contempt it deserves.”
Jim said that as a result of the Amsa negotiating team’s “arrogance and immaturity” in pay talks Numsa reverted to its initial demands for a R5,000 housing subsidy; an 80% employer contribution on medical aid; a 100% short time and lay-off payment, and four months’ fully paid maternity leave.
The union is mobilising for the mother of all strikes in the “steel belt of Vanderbijlpark, New Castle and Vereeniging precinct and there is also the possibility of a secondary strike to expose the rot in Amsa.
“We are currently convening general meetings in all Amsa centres as part of giving feedback to our members to mobilise them for industrial action. We are in contact with our global partners throughout the world in order to amplify the message that Amsa is a brutal employer,” said Jim.
Numsa leadership and Amsa management are set to meet for dispute resolution at the Metals and Engineering Industries Bargaining Council’s dispute resolution centre on April 24.
Amsa spokesperson Tami Didiza said it was disappointing that Numsa issued a media statement “which not only misrepresents the true position regarding the negotiations but is also premature in threatening a strike while parties are still in discussions trying to reach a solution”.
‘Concessions’
Amsa began pay talks with Numsa and Solidarity on February 20 and subsequently told unions that their demands are “completely unreasonable”.
Solidarity general secretary Gideon du Plessis could not be reached immediately for comment.
Didiza said that during negotiations, management showed Amsa “remunerates its employees above that of the market when compared to industries of similar size, number of employees and revenue level. Coupled with this is that 54% of employees are remunerated above their level of competency”.
After several negotiation sessions, all parties revised their initial demands and positions, said Didiza.
He said that on April 5, Amsa made “significant concessions” to achieve a deal.
Amsa’s consolidated offer includes a three-year wage deal for increases of 6% in 2023 and hikes linked to consumer price inflation (3% minimum capped at 6.5%) in the outer years of the agreement.
“Both unions have rejected our offer and the internal process is under way to try and resolve the matter,” said Didiza.
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