The National Union of Metalworkers of SA (Numsa) and Solidarity have signed a multi-term wage agreement with ArcelorMittal SA (Amsa) that will result in workers in the multibillion rand industry receiving increases of 6.5%.
The wage deal, effective from April 1 to March 31 2026, comes barely three weeks after Numsa, which has a membership of more than 400,000, threatened to embark on the “mother of all strikes” at Amsa, Africa’s largest steelmaker, in support of its demands for higher wages.
Numsa initially demanded a one-year 15% pay increase across the board, while Solidarity kicked off negotiations with a 10% demand, against the employer’s offer of 6%. Numsa had been demanding above-inflation increases in all the sectors it organises in to offset the rising cost of living that has led to a sharp increase in food, fuel, electricity and transport costs.
The pay deal will result in workers getting increases of 6.5% in the first year, followed by another 6.5% hike in the second year, and an inflation-related increase capped at 6.5% in the final year of the deal. The country’s consumer price inflation (CPI) surged to 7.1% in March, from the 7% recorded in February.
The multibillion rand steel sector contributes about 1.5% of GDP and employs almost 200,000 people.
Numsa general secretary Irvin Jim said on Monday as part of the wage deal that workers would receive a “once-off cash signing bonus of R10,000”; the medical aid subsidy would increase by 6.5% in the first year and CPI-related increases capped at 6.5% in the outer years of the deal; and Amsa’s medical aid contribution would remain at 60% in the first year.
“For year two the medical aid contribution will increase to 65% and workers contribution will reduce to 35% subject to the medical subsidy cap. And for year three it will increase to 70% but [employee] contribution will reduce to 30% subject to medical aid subsidy cap,” Jim said.
“All allowances will increase by 6.5%; for year two all allowances will increase by CPI but capped at 6.5% and for year three 6.5% increase for all allowances. Paternity benefit will increase from 10 to 12 days.”
The funeral benefit will increase from R10,000 to 20,000. “We welcome the signing of this agreement, particularly because at some point we were on the verge of a strike,” Jim said.
“However, we managed to find one another and this has been crucial in resolving this round of wage talks. We want to thank the negotiating team led by the regional secretary, comrade Kabelo Ramokhathali, for their hard work,” said Jim.
Solidarity deputy general secretary Willie Venter said the wage agreement “is something that our members can live with. We started off at 10% — that’s always the kickoff mandate for negotiations. The percentage itself sounded ridiculous but that’s how it goes [in negotiations]”.
Amsa spokesperson Tami Didiza told Business Day the steelmaker was happy it was able to reach a wage deal with both Numsa and Solidarity, saying it would help bring stability to the company’s operations during the period the agreement is in force.
In May 2022, parties signed a one-year deal for a 6.5% pay increase across the board.
This was after Numsa 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.
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