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Numsa to announce on Wednesday about progress in the car industry.

DATE: 02 August 2004

Johannesburg Press release – for immediate release

NUMSA TO ANNOUNCE ON WEDNESDAY ABOUT PROGRESS IN THE CAR INDUSTRY.

The National Union of Metalworkers of South Africa (NUMSA) will finally make a critical decision about wage talks in the car vehicle industry on Wednesday 04/08/2004. This follows a meeting between Automobile Manufacturers Employers Organization (AMEO) and NUMSA over the weekend to discuss wage proposals. Both parties will meet again on Wednesday 04/08/2004 to discuss other contentious issues. There is no wage agreement. The wage proposals remain embargoed until Wednesday. The employer organization has since offered a wage increase of 6,5% across the board. The union has revised its wage offer from 9% to 8,5%. The wage talks cover 21 000 workers in the vehicle manufacturing companies only.

The union will have to provide a greater degree of sensitivity in resolving difficulties in the car industry. We have therefore displayed more constructive approach in the talks. The union has been quite impressed with the progress in the talks. Employers have now shifted from their incongruous stance and are desperate for a solution. There is no wage deal but we see light at the end of the tunnel. The parties have been able to deal with the nitty-gritty’s of the wage demands. We remain positive that a deal can be reached to end the two months impasse provided employers remain focus. Our discussions with employers are inclusive rather exclusive. There is a need to develop a common purpose and start to give workers more privileges. We have always argued that employers must create circumstances which reward workers better.

South Africa labour is not expensive. Labour productivity has increased substantially. In general, the industry had shed jobs and the new export contracts had only secured existing positions of employers rather than creating sustainable jobs and paying world class salaries. It is wrong to benchmark production only and neglect workers conditions. Productivity is measured on the basis of the economic value of worker production. Increased productivity in the car industry means workers can be paid more without squeezing the profitability of vehicle manufacturers.

Numsa”˜s Demands.

-A guaranteed wage increase of 8,5% 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.

For more information contact Dumisa Ntuli @ (011) 689 1700 or cell 0829737282

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