DATE: 23 June 2005
Johannesburg Press release – for immediate release
STRIKE IN THE STEEL AND ENGINEERING INDUSTRY IMMINENT.
One day wage strike on the 27/06/2005 in the steel industry will continue as planned. This comes after the two days wage talks between the National Union of Metalworkers of South Africa (NUMSA) and the Steel Engineering Industry Federation Of South Africa (SEIFSA) failed. The employer organisation have tabled a final wage offer of 5,8% for the lowest paid and 4,8% for the highest paid workers. The union has moderated its demand to 10% for the lowest and 9% for the highest paid employees. The wage talks cover 310 000 workers employed in the steel and engineering industry. The parties will meet again on the 22 June 2005. The strike will be part of the COSATU’s protest action on job losses. NUMSA will formally register its dissatisfaction with low wage increases. As part of the COSATU action, NUMSA will hand-over a separate memorandum to all SEIFSA offices across the country.
The two days wage talks were a catalyst and SEIFSA failed to act expeditiously. Therefore there is no co-existence. Employers failed to heal the wounds, workers have no choice but to strike at the end of the month. It has always been apparent that employers will give a final wage offer of 5,8%. The wage offer is not compatible with reality. The battle lines are drawn and the strike will change the mindset of employers. Employers want the unions to remove all demands that add costs to the total wage bill. We cannot be blackmailed. They search for scapegoats and continue to blame the union rather than playing their role in a true successful manner. The employer primary duty is to manage workers and see to it that they progress in life by giving workers better wage increases without hesitation. We cannot continue on the current path because the approach of the employers is characterized by limited ability to appreciate that workers are over burden by economic costs. It is our view that employers are depriving workers a fair share of the profits.
It is sad that inflation rate has come down considerably and workers wages have not pick up. There is no bright side with the ever increasing petrol price , putting a heavy burden on transport costs. Most of the steel workers spend 45% of their salaries on food and transport costs. Food and fuel are big drivers of inflation. The fuel price shocks have not been contained. There are serious sea changes going on in pricing behaviour and market responses. It shows that inflation targeting does not achieve the desired results. Employers are too naí¯ve about price measurers and how such prices affect workers in the short-and long term. The increase in fuel and food prices makes things a little more difficult for workers to keep up with the increasing cost of living. Conversely , a better wage increase can grow the economy.
Numsa’s Demands :
1. Wages and Duration of the agreement:
That the wages increases shall be 10% for the lowest paid and 9% for the highest paid.
The wage parameters shall be set at 6 to 10% for the second year.
Demand a two year wage agreement.
2. Labor Brokers
· The use of labor brokers in direct production processes must be unequivocally outlawed.
3. Grading
Grades should be linked to NQF levels
4. Leave pay
· Gradually increase leave pay to 20 days after completing one year service.
5. Shift Allowance
Increase in afternoon allowance to 10%
6. Integration of house agreement
All house agreement companies must be intergrated into the main agreement as a separate schedule.
For more information contact Dumisa Ntuli @ (011) 689 1700 or cell 0829737282