BL Premium reports that small employers in the metals and engineering sector have vowed to oppose an extension of the wage deal agreed last week between the Steel and Engineering Industries Federation of Southern Africa (Seifsa) and the National Union of Metalworkers of SA (Numsa).
Seifsa and Numsa agreed to implement an above-inflation wage hike of 6%. After reaching the wage agreement with Seifsa, which is the largest employer body, Numsa called on employment & labour minister Thulas Nxesi to extend the agreement to non-parties, including members of the National Employers Association of SA (Neasa). In a statement on Friday, Neasa, which represents smaller players in the sector, said it would fight any extension of the 6% deal to its members. Over the past five years Neasa has successfully taken court action to prevent the Metals and Engineering Industries Bargaining Council (MEIBC) from extending wage deals to nonparties. Neasa members now reach deals at plant level. According to Neasa, the extension of the agreement will cause the demise of many businesses in the already “shrinking” steel sector and will further contribute to the staggering unemployment rate in SA. “It is therefore paramount that the extension of this agreement is prevented at all costs,” the employers’ association said. It further pointed out that the wage deal was not binding on its members. The association recently recommended that its members implement a 5% increase across the board for employees who were not on strike. Neasa’s rejection of the wage deal coincides with criticism of Numsa for dragging out the three-week wage strike, which cost the industry R600m and employees R300m in lost wages.
- Read the full original of the informative report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)
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