Labour department proposes metals strike settlement

A proposal by the department of labour to end the wage strike in the metal sector has been made, the National Union of Metalworkers of SA (Numsa) said on Monday (21/07/2014).

"This is a proposal from the department of labour. Employers are meeting today [Monday] to consider it. We expect the proposal to be formally tabled on Tuesday, at a council meeting [between the unions and the employers]," said Numsa president Andrew Chirwa.

The department of labour and the Commission for Conciliation, Mediation and Arbitration (CCMA) were facilitating the talks after negotiation between Numsa and the employer body - the Steel and Engineering Industries Federation of Southern Africa (Seifsa) - deadlocked.

Seifsa withdrew its conditional wage offer on Tuesday, after Numsa rejected it.

The conditional final offer was a 10 percent wage increase in 2014, 9.5 percent in 2015, and nine percent in 2016.

Chirwa said once the new wage proposal had been formally tabled the union would consult its members for a mandate to accept or reject the offer.

He described the proposed offer as not being too far from the union wage demands.

Over 200,000 Numsa members in the metal and engineering sector downed tools on July 1, demanding a salary increase of 12 percent, dropped from their pre-strike demand of 15 percent. They also demanded a R1000 housing allowance, and a total ban on labour brokers.

The union announced on July 13 that it had lowered its wage demand to 10 percent.

Chirwa confirmed there was a proposal but did not want to give details.

The National Employers' Association of SA (Neasa), representing the interests of micro businesses, said it rejected the proposed settlement.

"The ministerial team of the department of labour has tabled a settlement proposal further out of reach of [small, medium and micro enterprises]," said CEO Gerhard Papenfus.

"What is particularly disappointing is that the ministerial team proposed a settlement arrangement which may satisfy the trade unions but [will] accelerate job losses in the metal industry."

He said a short-sighted settlement would end the strike but would lead to long-term hardship across the board and would eventually bring about socio-economic instability.

"We urge the unions to look beyond the short-term interests of their members and to act in the long-term interests of the industry, which will bring about more sustainable benefits for everybody," Papenfus said.

He said the new proposal included a three-year agreement with an increase of eight percent for workers on wage rate A in years one and two, a 10 percent increase for wage rates F, G and H for year one, a 10 percent increase in year two for wage rates G and H, an eight percent increase for wage rate A in year three and 10 percent for wage rate H in year three.

Naesa has offered an eight percent wage hike, subject to an agreement on the entry-level wage. - Sapa