Fin24 reports that following an unsuccessful court challenge from the National Employers Association of SA (Neasa) and the SA Engineers’ and Founders’ Association (Saefa), Department of Employment and Labour (DEL) Minister Thulas Nxesi has gazetted the extension of a metals and engineering wage deal to all employers within the applicable bargaining council’s scope of application.

The two employer associations took the Metal and Engineering Bargaining Council (MEIBC) to the Labour Court in August to prevent it from extending the "unaffordable" wage deal. The wage deal in question is for a 6% increase to the minimum rate in the sector. The main agreement becomes legally binding on all non-party employers from next week Monday. The Steel and Engineering Industries Federation of Southern Africa (Seifsa), a supporter of the extension, has welcomed its publication in the government gazette. Seifsa CEO Lucio Trentini pointed out that the agreement was supported by five of the biggest trade unions in the industry, including the National Union of Metalworkers of SA, and 18 independent employer organisations. Neasa CEO Gerhardus Papenfus reacted as follows: "We are not at all surprised. The minister has never illustrated an understanding of what is happening in this industry and he has done what we expect him to do. I have no doubt that the judge is wrong and the minister hasn't given any regard to our submission or those of employers." He claimed some employers in the sector were paying employees R30 an hour and would have to double that rate in a very short period. He advised that Neasa would approach the courts and rally the support of thousands of businesses who could not afford the extension.

• Read the full original of the report in the above regard by Khulekani Magubane at Fin24

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