Businesses shuttered as strike turns nasty – by Karl Gernetzky DAMAGING strike action continues in the metals and engineering sectors on Monday after political demands were blamed at the weekend for preventing a settlement. No formal meetings have been scheduled between the National Union of Metalworkers of South Africa (Numsa) and employers. Employers in Gauteng are expected to shutter their businesses on Monday, after widespread violence, intimidation and property damage were reported last week in a strike that has hit South Africa’s manufacturing sector and led to warnings it could severely affect economic growth. There is also risk of further rating downgrades after rating agency Moody’s warned last week the strike and a weak investment climate were negative for South Africa’s creditworthiness. About 220,000 Numsa members downed tools last week, demanding a double-digit wage increase, among other things. No further meetings were scheduled after last week’s between Numsa and the two largest employer federations in the Metal and Engineering Industries Bargaining Council, while bilateral meetings between employers and five other unions are set to continue. Employer body the Steel and Engineering Industries Federation of South Africa (Seifsa) revised its offer last week, expressing disappointment that Numsa had rejected numerous employer concessions. Seifsa offered increases of up to 10% and had dropped a proposal to lower minimum wages for new entrants to the industry. Regrettably, however, it would appear that we continue to be miles apart with the union, as a result, among other things, of patently political demands about which we can do nothing, said Seifsa CEO Kaizer Nyatsumba. Numsa demands that employers dispense with labour broking and not implement the Employment Tax Incentive Scheme. The union has demanded a 12%-15% increase, and is stressing a double-digit increase and a one-year deal, citing the effects of inflation on members who spend a large portion of their pay on food and transport. Numsa general secretary Irvin Jim said the parties were not very far from each other but continued disagreement over the youth wage subsidy and labour broking were crucial. The National Employers Association of South Africa (Neasa) met Numsa on Friday without reaching agreement, CEO Gerhard Papenfus said. Neasa made it clear it could not afford a 10% wage increase, and has not dropped the proposed relaxation of minimum wages for new entrants, citing a need for a wage deal that will assist in growing the sector. We can’t go above 8%, said Mr Papenfus. Neasa was also concerned that Numsa would seek to continue the strike to make a political point. We believe they are trying to send a message to South Africa, the government and the private sector. Mr Papenfus said he had written to Labour Minister Mildred Oliphant expressing concern that she was making a judgmental error in choosing to meet only Seifsa and Numsa. There is a prospect that Seifsa — which represents 20% of the 10,500 companies in the bargaining council but covers more than half of all employees — will sign a deal with unions that could be extended. In a series of court battles, Neasa successfully challenged but ultimately lost its battle against the extension of a 2011 agreement. It represents 3,000 companies and about 25% of those employed within the council. The labour minister is empowered to extend collective agreements to nonsignatories in the interest of labour stability or if she believes the signatories are sufficiently representative. Mr Papenfus said if an agreement between Seifsa and other unions was signed and then extended, we would undoubtedly challenge it. With Reuters Article published with the kind courtesy of bdlive.co.za
Posted on: Mon, 07 Jul 2014 05:50:33 +0000
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