Business Times reports that the beleaguered Metal and Engineering Industries Bargaining Council (MEIBC) was thrown a life-line at the eleventh hour last week when employers agreed to extend the existing levy agreement for another year.
At a meeting on Wednesday, the day the agreement expired, the management committee of the council, which comprises employer bodies and trade unions, decided to apply to the Labour Minister to extend the levy agreement to non-parties for 12 months. But, not all employers were in favour of this. The National Employers Association of SA (Neasa), which is not a signatory to the agreement, said its members would no longer make contributions in support of an insolvent council. At the heart of the dispute is a proposed 18% hike in the levy paid by firms and employees, which has not been increased since 2011. The council, which has a deficit of over R14m, is unable to pay its service providers and is not carrying out any of its duties, including facilitating disputes. From the end of this month, the council will rely on levy contributions from only those employers who are signatories to the renewed agreement, meaning that it will be running on a shoe-string budget.
- Read this report by Nompumelelo Magwaza in full on page 7 of Sunday Times Business Times of 3 July 2016
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