There have been unprecedented gains for workers following the recent volatile industrial action around South Africa
Glenda Daniels
Organised labour flexed its muscles a week ago and won some far-reaching gains, including medical treatment for HIV-positive miners, training for women, narrowing of the wage gap, meal intervals, leave benefits and a commitment to minimum wages.
Far from crippling the economy, the recent strike action has been of a short duration, like the Eskom strike that ended after four days.
Managements and unions settled major wage disputes in other sectors as well, such as mining. But clothing and textile workers, petrol attendants and Iscor workers are expected to down tools from next week. In addition, the South African Municipal Workers’ Union said yesterday that it was planning to go on strike next week at the Rand Water Board over the unilateral implementation of a 7,5% increase by management, echoing the issue at Eskom.
This week talks between the Chamber of Mines and the National Union of Mineworkers (Num) averted a strike by about 50 000 miners at the country’s largest gold producers Harmony, Goldfields and Durban Roodepoort Deep (DRD). Management agreed to the union’s minimum wage demand of R2 000 a month (at Harmony and Goldfields) and R1 600 at DRD, 25 days annual leave, the employment of women, meal intervals and medical benefits for HIV-positive miners.
“I’m excited about the agreement. There were real issues on the table rather than us being strike hungry. The reality is that for the first time we have achieved much in improving the lives of miners. The agreement on HIV, for example, is really significant in that for the first time we have got management to commit to an education programme on the mine, a wellness programme, medical treatment and a community programme,” says Num general secretary Gwede Mantashe.
The union was serious about its demands, he says, but was cognisant of the fact that after the last big national strike by mineworkers in 1987, 50 000 workers lost their jobs.
“We did not want the same casualties,” said Mantashe. Num has settled with Anglo-Gold, Placer Dome South Africa and coal producers.
Last week Num, the National Union of Metalworkers of South Africa (Numsa) and Mineworkers Union-Solidarity successfully overturned Eskom’s unilateral implementation of wage increases.
This week a historic two-year wage agreement was reached between the Steel and Engineering Industries Federation of South Africa and Numsa covering 200 000 workers, which includes a 9% increase for workers at the lower end and an 8% increase for those at the top. The agreement, which includes benefits related to overtime work, HIV codes of conduct and overtime work, is hailed by Numsa’s Dumisa Ntuli as one that will “boost morale and labour productivity”.
However, Numsa has not reached a settlement in the motor sector or at Iscor where 15 000 workers are expected to down tools on Monday at Vanderbijl Park, Vereeniging and Newcastle over a wage dispute.
Petrol attendants are expected to declare a dispute with employers over a 15% across-the-board increase on Monday, with Numsa saying that working conditions and the average pay of R25 a day is “dismal”.
But the strikes and 11th-hour talks to reach agreement in favour of unions have not made business the loser. The strikes have been of short duration, settlements have been quickly reached in the collective bargaining process and there have not been massive negative consequences to foreign investor confidence to South Africa, say analysts.
An overall downward trend in strikes is still evident, according to the government and independent commentators.
“It is too early to conclude that there has been an upturn in strike action this year. It is also extremely dangerous to take one condensed period [one quarter] and draw conclusions without looking at overall trends in recent years. Based on monitoring strikes since the early 1980s, both public and private information indicates that there is a downward trend in strike activity,” says the Department of Labour.
“Strike activity has been on a downward slope for the past decade,” confirms Jackie Kelly, labour analyst from Andrew Levy and Associates.
She says wage demands have not been unrealistic as increases are lower than in previous years. More importantly, the settlements have shown commitments from both unions and managements to close the high wage gap in South Africa.
“The settlement increases have still been below the traditional increases of 2% or 3% more than inflation. There have also been trade-offs, for instance at Eskom, to try and narrow the wage gap, with higher-earning workers getting smaller increases and bigger increases for the lower end,” Kelly says.
“Unions seem to know that protracted strikes in the throes of an economic downturn could cause a loss of jobs.”
Inflation is 6,5% and most increases this year are about 7,5% to 8%, which is not unreasonable, she says.
Collective bargaining has been key to solving current industrial disputes. Labour analyst Duncan Innes says that unions and managements have acted “maturely” in the present strike action, which is positive for the country.
However, one sticking point between labour and business that will not be easily resolved, because it is so steeped in politics, is privatisation.
Tripartite alliance partners the Congress of South African Trade Unions, the South African Communist Party and the African National Congress are embroiled in a battle over the ruling party’s collusion with business in implementing privatisation, which has resulted in massive retrenchment and loss of benefits for workers.