DATE : 08 September 2004
Johannesburg NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
NUMSA REACHED AN IN-PRINCIPLE AGREEMENT WITH MOTOR RETAIL EMPLOYERS.
Yesterday, the National Union of Metalworkers of South Africa (NUMSA) and the Fuel Retailers Association (FRA) and the Retail Motor Industry (RMI) have once again reached an in-principle agreement to conclude this year’s wage negotiations. This is part of an attempt to avoid a planned strike on the 10 September 2004. The union will now consult motor retail workers to determine whether to sign the agreement or not. So far 180 000 workers in the petrol stations , component manufacturing , car dealer shops and panel beating shops remain ready to strike on the 10 September 2004. The in-principle agreement entails the following:
Parties agreed on a three year multi agreement, commencing 1 September 2004 to 31 August 2007.
Wage increases on actual rates of pay of 7,5% in one year, CPIX for June 2005 plus 1% in year in year two ; and CPIX for June 2006 plus 2% in year three.
Capping parameters of 5% and 9% will apply during years two or three i.e should the CPIX plus 1% in year two and/or CPIX plus 2% in year three fall below 5% or exceed 9% then the increase in that year will be fixed at either 5% or 9%.
Leave bonus will now increase from two weeks to three weeks in year in year two.
The parties will jointly participate towards a speedy resolution on the Agency Shop Agreement in order to expedite the submission of the agreement for gazzetting and extension to the entire industry.
Workers will produce medical certificate or other satisfactory evidence within a specified period of sick leave.
We hope that employers will not renege on the new in –principle agreement. We now want to consult members before signing an agreement. The talks took an unexpected dimension and concretely there were no debates on mathematical wage issues. Depending on what workers will say during the consultation process, the parties could sign and seal the agreement by next week Monday 13 September 2004. We are so close to conclude the agreement. We hope workers will be thrilled with the in-principle agreement particularly the wage increase which is above the narrow expectations of conservative economist always wanting unions to accepting lower wage increases in line with inflation targeting. If workers are not satisfied the strike will be the only remedy.
We have now observed seriousness on the attitude of employers. We think that they are desperate to conclude an agreement. There has been a positive attitude in the talks. There has been a substantial change in the agreement with an additional wage offer of 1% for the two years. It has really taken long hard years for the union to convince employers to accede to averagely high wage increase. We have argued strongly in the past that wage rates of motor retail workers should be impeccably based to cushion for vagaries of inflation and economic hardships.
We hope and trust that workers will be encouraged with the new shifts. Maybe we can move forward to concretely transform the industry. It will be historic to sign a long term agreement in the motor retail industry. It will be for the first time in 50 years. The past wage agreements were in a piecemeal fashion. This has created problems on each party’s resources and has taken a lot of energy. With this in-principle agreement parties will now concentrate on bigger issues of the industry. This will bring changes on how parties are bargaining in the industry. We have made great strides to bring transformation in the industry. It was difficult for employers to understand change. Sometimes we understand that change is painful. We hope we can be able to build.
For more information or interviews contact Dumisa Ntuli at (011) 689-1700 or 0829737282. website www.numsa.org.za