BL Premium reports that after serving a 48-hour strike notice, the National Union of Metalworkers of SA (Numsa) will be embarking on a wage strike from Wednesday at steel producer ArcelorMittal SA in support of a 10% wage hike demand.

The company is offering 5%, in line with the 5.8% headline inflation the Reserve Bank has forecast for 2022, claiming its offer is higher than the 5.5% average that has been implemented in the steel sector. Numsa’s Kabelo Ramokhathali said that workers also want a housing allowance, the scrapping of labour brokers, insourcing of temporary workers and that employers should contribute 80% of fees for workers’ medical aid. In 2020, the industry entered into a wage-freeze agreement with unions due to Covid-19. On Tuesday, ArcelorMittal raised concern over the "unsustainable increases" Numsa was demanding, saying they could lead to cost pressures that would "weaken our competitiveness". On top of the 5% across-the-board wage increase, it has offered Numsa a 2% cash equivalent based on all "remuneration elements to be paid monthly". CEO Kobus Verster lashed out at Numsa for "disingenuously" suggesting that employees earned R7,000 per month: "The current average total remuneration of the lowest grade of employees at [ArcelorMittal] is R21,423 per month, excluding overtime. The offer tabled by the company will result in an average positive adjustment of R2,246 per month for bargaining unit employees." With Numsa members downing tools at plants in Tshwane, Vanderbijlpark and Newcastle from Wednesday, ArcelorMittal spokesperson Tami Didiza said there were "contingency plans in place".

• Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (subscriber access only)

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