DATE : 15 July 2004
Johannesburg NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
LAST CHANCE FOR CAR EMPLOYERS AS WAGES REMAIN THE SAME.
The strike action in the car industry will commence on the week of the 26 July 2004. This comes after the National Union of Metalworkers of South Africa (NUMSA) and the Automobile Manufacturers Employers Organisation (AMEO) failed to reach wage settlement. The wage deadlock continues as the wage offer remains unchanged at 6,5% across the board. In a last chance bid to avoid the strike the union will now meet with the Chief Executive Officers on Tuesday 20th July 2004. The union is demanding 9% across the board.
The 6,5% wage offer is distasteful. The battle lines are drawn, it remains to be seen whether the employers want to be reasonable. Judging by the snails pace response, to some extent total rejection of crucial non wage demands the bell will ring for massive strike. The union will be obliged to issue a forty-eight hour’s notice for workers to resume industrial action if there is no amicable agreement in the meeting with the CEO’s. We believe that the 6,5% wage offer is not only a distortion but also an obfuscation of what employers can offer in the industry. There is no point of negotiating a wage increase when this increase will remain at a low base in the wage packets of workers. The current wage offer has no real economic benefit for workers. Employers have lost out on opportunities and making undue delays to conclude agreement.
So far, 21 000 workers remains mobilized and ready to resume an indefinite strike action. The current dispute is not only about differences between wages. The point of contention is whether the employer federation is prepared to meet other non wage demands. The wage issue must also be considered qualitatively. AMEO must meet all the crucial socio-economic demands to avoid a strike. What we require is a comprehensive package agreement that will achieve desirable economic outcomes in the industry.
NUMSA remain focused, hopeful, pragmatic and creative to engage the employers and improve the standard of social living. AMEO must act diligently in making sure that workers demands are met. Therefore any consequential refusal or indecision to meet the demands will put the industry in bad light and AMEO will run into credibility problems for failing to be responsible and rational. Employers must come with a benevolent approach to address our demands. If this will not be the case, the employer body will be overtaken by events and they will have to shoulder the consequences of the strike.
NUMSA actions will be meritorious only to the extent that it will be directed towards the good and changing inherited practices of paying low wages. Our members have multifarious interests and concerns they cannot narrowly be satisfied with the low wages. We argue strongly that AMEO must refrain from the appetite of lower wages and rejecting important socio-economic demands. Employers must promote common good by creating universal conditions for growth through higher wages and stop any ceremonial approach to our demands. There must be a greater balance of benefits. Lower wages and vast disparities in the distribution of the benefits in the economy have created an environment that is unstable and volatile.
NUMSA cannot accept employer’s ideology of wage determination because it is destructive and shortsighted and does not take into account the growing poverty and unemployment in the economy. Wages in the industry should be complimented by a comprehensive system of social protection in order for workers to increase their purchasing power in the medium term. The success of expansionary demand side policies in South Africa will depend on the balance of whether workers are paid good salaries, but also on the extent to which workers can spend their money on domestic goods. If the wages remain constrained to lower levels the economy will not grow because the purchasing levels of the majority of the workers will not increase. If wages are low, workers cannot save and ultimately that destroys investments. The way in which wage policies are conducted depends on the narrow belief of employers about the direction of exogeneity between saving and investment. This kind of prescription must change because there is no research, which informs the outcome. We argue strongly that domestic savings must be encouraged in an efficient way by paying workers competitive salaries. This will have a positive impact on the economy and can raise productive capacity.
Numsa”˜s Demands.
-A guaranteed wage increase of 9% percent across the board;
– 3-year wage agreement;
-Training should take place during working hours;
-100% payment of maternity leave;
-For every artisan there must be one apprentice;
-Workers working under the labour brokers should be employed permanently after 3 months;
-Any bonus should be calculated at 9%;
-Provide anti-retroviral drugs to HIVAIDS sufferers and must be given 30 days sick leave circle;
-Negotiate additional categories of workers for level 5;
-5 days per occurrence for family responsibility leave.
OVER 20 000 STEEL AND ENGINEERING WORKERS TO MARCH.
In last effort to avert the strike, the National Union of Metalworkers of South Africa (NUMSA) will meet the Steel Engineering Industry Federation Of South Africa (SEIFSA) on the 23rd July 2004. If the dispute remains unresolved, the Engineering Bargaining Council will issue a deadlock certificate for the union to strike. In anticipation of the negative response from employers workers in the steel and engineering industry will march in the street of Johannesburg on the 29 July 2004. The protest march is part of the union effort to compel SEIFSA to meet the 12% wage demand. The employer federation gave a flat 4,7% wage offer on the actual increase of workers in the steel and engineering industry.
The 4,7% wage offer is not backed by any economic evidence that it can cushion wages of workers against the effects of inflation, unemployment and poverty. This is a miserable percentage offer that fall below the wage packets of workers. Most of the steel and engineering workers spend most of their money buying food. The food price index currently stands at slightly above 15%. The wage increase currently proposed by SEIFSA would not provide a better life for workers because of the sharp increase in the prices of basic foods like bread and maize. The rise in the petrol price has also inevitably increased the costs of commuting. The current payment offer by the employer federation has a deep knock-on effect as workers are dependent on the salary to uplift their living standards. This offer is not in line with the general demand of a social wage to cater for effects of unemployment and poverty. The current salary offer is a huge setback and disgrace for the workers who are committed to enhance production in the industry.
Most of the workers in the engineering and steel industry are unable to purchase goods and services as a result of the diminishing purchasing power and food increases. We doubt very much that SEIFSA understand such economic conditions and inflationary pressures on workers wages. Labour productivity has increased with no guaranteed improvement in the salaries of workers. The employers have not comprehended the dynamic nature of the wage-work bargaining, which is appropriate in the current social, and economic conditions of the South African labour market system. The offer is not objective and not in line with the bargaining arrangements for promoting fair bargaining.
THE MOTOR RETAIL WAGE DISPUTE UNRESOLVED AS PROTEST ACTION STARTS.
The wage talks between National Union Of Metalworkers Of South Africa (NUMSA) and Fuel Retailers Association (FRA) and Retail Motor Industry (RMI), remain deadlocked. The union declared a dispute last month after the two employer organisations failed to give a wage offer. The union will resume protest actions all over the country. The first protest action will take place on the 20th July 2004 at Caesars Palace, Kempton Park. The wage talks cover 180 000 workers in the petrol stations, component manufacturing, car dealers and panel beating shops.
The motor retail employers failed to break the impasse. Unless the dispute is expeditiously resolved, we remain on constant course to continue with protest actions. We want the employers to completely move away from nefarious agenda of paying workers minimum rates. We are not carried away by the lower inflation rate. The question is whether the employers are prepared to put a percentage increase on the table that is real and achievable? Over the past 10 years the wage increases on minimum rates remain on paper and 80% of workers loose out and only a marginal 20% benefited from the increase. Wages in the industry have not bettered or improved in an imperceptible degree. The wages of the majority of motor retail workers had remained stationery. The wages in the industry deviated from the actual practice and do not correspond with the actual salaries of workers. The union must ultimately take action because workers are struggling to get real wage increases. At the heart of the dispute is for employers to grant increases on the actual rates of pay. The protest actions will be our weapon to caution employers of a bigger action.
Given the fact that the basic hourly rate for petrol attendant is R5.53 in urban areas and R4,72 on the rural areas, the no wage offer will put strain on the living standards of workers. Our research has exposed that motor retail workers are paid less than old age pensioners. This is highly ridiculous taking into cognisance the amounts of time spend in dangerous jobs and unfavourable working conditions in the industry. It is common for petrol station attendants to work 12-hour shift a week for a little as R25 a day. The unfairness of this situation, combined with the steady erosion in the buying power of motor retail wages manifest in bitterness for workers to strike. Even the current food prices and transport costs are also skewed against most motor retail workers. Workers have been prejudiced.
The average rise in commodity prices has ultimately resulted in general fall in the wage increases. We want to foster changes in the industry so that workers are paid respectable and decent wages. The industry has been under siege for some years as a result of low wages. The majority of the workers in the industry earn more than the rates set by the Bargaining Council. What this means is that when there is an agreement on wages in the industry, the increase is only applied on the minima set by the Bargaining Council and not on what workers actually earn. Wages and benefits are extremely brutal in this sector.
Numsa’s Demands:
q A wage increase of 10% for grade 7 and 8 and 12% for grades 1 and 6.
q R10 per hour minimum wage for all workers.
q Night shift allowance of 20% afternoon shift – 10%.
q 40 hour per week.
q Three year agreement
q Workers knocking off after 20H00 should get free transport.
q Area wage differentials must be removed immediately.
q Four weeks bonus at the end of 12 months.
NUMSA CONSULTS WORKERS ON THE ISCOR 5% WAGE OFFER.
The National Union of Metalworkers of South Africa (NUMSA) and ISCOR steel division have not signed any deal on wages. The union is still consulting workers on the 5% wage offer. So far , the union is demanding 8% for workers earning below maximum and 5% for workers earning above the maximum rates.
It is vital for the company to pay due attention to appropriate wage remuneration. Achieving these does not require the union to enforce action but proper thinking and investment on workers. The consultation process is crucial and important in reaching a wage agreement that will satisfy the ultimate needs of workers. The process of consultation will be concluded on the next weekend. The union will vigorously strive to improve wages at the company, whatever it takes.
The company has failed to leave up to their best promises by remunerating workers according to their 2002 business plans. Workers are still wounded from the retrenchments that have taken place over the past five years since LNM became the majority shareholder. This has been exacerbated by the recent merger which will cause extra hardship to the down stream sectors of the economy in terms of steel prices and employment. Employment remains in a precarious state.
We believe that ISCOR must at all times significantly support workers and completely move away from active despicable methods against the workers. To this end, the union will continue to push hard for changes that will not demobilize workers.
ESKOM REFUSE TO PAY WORKERS ON YEARS OF SERVICES.
Workers at ESKOM utility company are angry at the sudden refusal of the company to pay for hard years of service (gratuity). According to the agreement concluded in the last quarter of 2003, workers must receive between R4 000 and over R100 000 as a gesture for contribution in the company. Workers were disturbed by the golden handshake payout of R27,4 million to the Executive Director WJ Kok. This also comes in the face of managers and directors dividing R176 million amongst themselves last year.
We will never be convinced that directors should be paid lavish salaries. We view such huge payment of performance bonuses to managers and directors as misallocation of resources. Against this background, we maintain that workers deserve to be paid the service gratuity. Any measure of success for the company is dependent on paying workers better.
The damage to whooping salaries of top managers has been quite enormous. Clearly, nothing dictates in the minds of the managers to share the cake with workers by compensating for the years of long service. The ESKOM multiple boardrooms pay that has been running since the mid 1990s shows no signs of abating. ESKOM managers are topping the salary league. If we had to compare the salaries of executive directors with ordinary workers who are getting R2500 per month, it shows an expanding wage disparity.