The National Union of Metalworkers of South Africa [NUMSA] and the Steel Engineering Industry Federation of South Africa [SEIFSA] will resume their first round of wage bargaining round on Thursday 05/05/2005 .
Both parties will lock horns in negotiations to determine wages and working conditions of 310 000 workers employed in the engineering and steel industry. The negotiations are taking place within economic conditions that are negative for the workers. In terms of the macro-economic conditions, the economy has experienced massive job losses, lower inflation and widening income inequality between executive directors and workers.
In other words, this year’s bargaining round employers must expect hard and serious bargaining round taking into cognisance that poverty, increasing food inflation, increase in petrol price; rising levels of retrenchments and unemployment continue to slash the wages of workers in the engineering and steel industry. NUMSA will not settle for a lower increase because of government inflation targeting policy. Low inflation figures do not improve the economic standard of workers. Such low levels of inflation make wage negotiations difficult.
They have been other workplace developments that have put workers on the defensive. Workers’ real earnings have fallen by 10% due to the reduction in the inflation rate in the last ten months. While new technology may offer the potential of benefits such as improved productivity and better working conditions, such benefits are meaningless unless shared by workers and society at large. There is a persistent belief that the introduction of new technology in the metal industries will produce higher wages and better benefits based on improved productivity, lower costs and more refined skills.
The truth is that in most cases, workers end up either losing their jobs or having their opportunities for training and career advancement greatly reduced.
Most of the engineering and steel companies have introduced short-term contract work, outsourcing, sub-contracting and in particular by introducing labour brokers into the workplace. This deprives workers of their job security, real wages and benefits. Many of our members and other workers are left in a position where they do not participate in the economy as either producers or consumers. The massive level of poverty in our country, lack of savings combined with exploitative wages and unemployment excludes many from purchasing of goods and services.
The effect of this lack of participation in the economy is a further growth in unemployment as the market for goods remains static and then falls. We trust and hope that SEIFSA will not display resentment and repulsive attitude on our noble demands. Any resentment and arrogance that will be expressed by SEIFSA will seriously render relationships intolerable. NUMSA will table and fight for the following demands:
1. Wages and Duration of the agreement:
That the wages increases shall be 12% for the lowest paid and 11% for the highest paid.
The wage parameters shall be set at 6 to 10% for the second year.
Demand a two year wage agreements in the engineering and motor.
2. Employment Security
Notice pay shall be four weeks.
The severance pay shall be 4 weeks for every completed year of service per worker. Furthermore, the benefits pertaining to this severance pay shall be extended to limited duration contract (LDC) workers. With respect to LDCs, staggered termination should be treated as unbroken service for the purposes of severance pay.
Bargaining representatives are tasked with exploring the issue of the viability of Work Security Funds in more detail.
3. Labour Brokers
To close some of the existing gaps in the Main Agreement in particular pertaining to the issue of labour brokers, Section 20 shall be amended as follows:
Section 20 (c) (ad) – in the event of a dispute over the use of labour brokers, each party reserves the right to embark on industrial action.
We further insist that the use of labour brokers in direct production processes must be unequivocally outlawed.
Most importantly we declare that in the long-term, NUMSA’s position that the practice of labour brokering be completely outlawed should be deliberated upon at NEDLAC.
4. Training Demands
Training Conference Resolutions must be endorsed.
The work group consisting of NUMSA, MERSETA and Bargaining Council should be revived.
5. Grading
Grades should be linked to NQF levels
6. Leave pay
Gradually increase leave pay to 20 days after completing one year service.
7. HIV/AIDS
Employers must adhere and remain committed to the HIV/AIDS Code of Good Practice.
8. Shift Allowance
Increase in afternoon allowance to 10%
10. Integration of house agreement
All house agreement companies must be integrated into the main agreement as a separate schedule.
[For further information please contact Dumisa Ntuli @ 011 689 1700 or 0829737282]