DATE : 11 July 2005
Johannesburg NUMSA PRESS RELEASE – FOR IMMEDIATE RELEASE
NUMSA TO ACCEPT 6,8% FROM STEEL EMPLOYERS TO AVOID STRIKE.
A potential strike action by over 190 000 workers in the steel and engineering industry has been avoided. This comes after workers in the industry overwhelmingly agreed to accept 6,8% for the lowest paid grades and 5,2% for the highest paid grades. In this regard the intended strike action on the 12th July 2005 has been called-off. The National Union of Metalworkers of South Africa (NUMSA) will formally meet with the Steel Engineering Industry Federation of South Africa (SEIFSA) today at 11h00 to sign a two year wage agreement. The wage increases will be effected from the pay week ending 8 July, 2005 and will benefit 310 000 workers employed in the industry. The parties agree to discuss the employer’s rejection of the following trade union demands:
· Labour broker arrangements
· Retirement gratuity pay
· Shift allowances
· Leave enhancement pay
· Severance pay
The wage agreement is in line with our hard bargaining strategy and determination encapsulated in our vision to significantly cushion workers salaries. We welcome the ground-breaking wage agreement for workers in the steel and engineering industry. The wage margin between what the employers offered and the union demand was minimal, that is the reason we called off the strike. The current wage increase will not dilute the actual earnings of workers. The wage increases will definitely mitigate all the losses and cushion the wages. We think that this is the highest average wage increase possible considering the effects of inflation on wages. Inflation has a negative impact on wages as it eats into the buying power of workers. If people expect the union to accept lower wage increases in line with the Reserve Bank policy of inflation targeting, they are very much mistaken. We believe that high wage increases alleviate the ever-increasing pressure on low-income households as a result of the rising cost of living. With the rate of inflation on the decline , these increases will translate into real purchasing power of workers.
We have been persuasive to engineer the direction of employers to pay better wages. The ball will now roll swiftly because we have received a positive response from SEIFSA. Crucially, the workers will be able to celebrate such a wage increase because it addresses inflationary pressures. The strike was going to be a remedy to pursue employers to give a better increase. Employers have created uncertainty by wanting workers to accept low wages. We have made strides to change the mindset of employers.
The message is on the wall to other employers, it is either they follow the stream that will lead to a common ocean or divert into another ocean. There has to be a balance in the redistribution of income amongst the poor workers. We want employers to have a healthy appetite for paying better wages. The bargaining strategy of the union has really achieved excellent results. The wage increase is a victory for all workers. The wage increases will give the union an opportunity to substantially narrow the wage gap. We have forced employers to move from narrow and antagonistic confines of wage restraints.
For more information or interviews contact Dumisa Ntuli at (011) 689-1700 or 0829737282.