DATE: 26 July 2005
Johannesburg
NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
OVER 2000 WORKERS AT HIGHVELD STEEL WILL RESUME STRIKE.
Over 2000 members of the National Union of Metalworkers of South Africa (NUMSA) will resume industrial action at the Highveld Steel company in Witbank on Wednesday 27/07/2005. This comes after the company wage offer of 5,5% while the union is demanding 8% wage increase plus a 5% increase in housing allowance. The union issued a strike notice on Friday 22/07/2004 for a strike to commence this week. The production of the company will be heavily affected as a result of the strike. The strike will continue for an indefinite period. The company has now opted to stock-pile to minimize the effect of the strike. Similarly, workers are more than prepared to stage a month long strike. Strikes are an international phenomenon.
There is growing anger against the company massive profits. Workers are disappointed that despite the company net profit of R119 billion and increase in the share value to R75 per share from R2,86 in the current financial year, it is unable to pay better wage increases. We wonder whether it makes business sense to have a killing on profits and refuse to pay the same people who contributed to better production. Labour production has risen by 10% but workers continue to swallow a bitter pill. There is nothing more humiliating where workers are not remunerated and compensated for hard-work. Workers are also penalized for incentive bonuses.
Many workers do not see a great future with the company. Employment in the company is shrinking and remains highly precarious. In the last two years 1900 workers were retrenched as result of an one-way restructuring exercise. The company has opted to acquire the services of labour brokers. So far , over 1000 workers belong to labour brokers. Already the company has violated the spirit of the collective bargaining by refusing to give an increase that will be fair as to cushion for the effects of poverty and unemployment.
The response of the employers in the past has not been dignified and rational which precipitated a number of industrial action measures. NUMSA believe that the current demand of 8% to all workers is scientific and it falls within the required economic explanation. The company has been more reticent on giving workers improved wages. There is no justification for a low base percent offer in the mist of difficult economic conditions. The spending pattern of workers in the steel company has increased six times in the last two years above yearly inflation rates. This has constrained wages and undermined the social wage.
The increase in the prices of commodities has not been consistent with wage improvements. Many workers remain cash strapped and there is no upward mobility in their economic lives as a result of anomalies in pay. By and large, workers remain in the same circle of poverty. The wages in the company have not been broad-based to accelerate the closing of the wage differentials and addressing economic difficulties. We trust and hope that sanity will prevail on the part of the company to meet all the wage demands. We also hope that the company will change its imperious approach to collective bargaining.
For more information contact Dumisa Ntuli @ 689-1700 or cell 0829737282