The National Union of Metalworkers of South Africa (Numsa) and the Steel Engineering Industry Federation of South Africa (Seifsa) started another round of crucial wage talks on Tuesday.
Wage talks between the two parties hit a snag last week after Numsa rejected the offer of a 9%, across the board wage increase for workers in the steel and engineering industry.
Numsa has accused Seifsa of violating the good spirit of the collective agreement by refusing to give an increase that will be fair and considerable to cushion the effects of poverty and unemployment.
Numsa spokesperson Dumisa Ntuli said the response of the employers had not been dignified and rational.
He said the union believed that the 9% wage offer fell below the required economic explanation.
“There is no justification for a low base percent offer in the midst of difficult economic conditions. The spending patterns of workers in the steel and engineering sector have increased six times in the last two years above yearly inflation rates,” he added.
Numsa’s demands include that wages be increased in relation to the consumer price index (CPIX) plus 5% and that a two year wage agreement be signed.
On job security Numsa is demanding that employers establish both an Entitlement Fund and a Work Security Fund.
The trade union also wants companies to provide antiretroviral drugs free of charge and that companies provide access to sustainable antiretroviral therapy when clinically indicated.
They also demand that after three months any labourers provided by a labour broker be deemed permanent employees of the client company.
Ntuli added that in significant proportion, the employer federation has clearly not looked at high wage increases as a tool to close poverty gaps.
“They have not identified strong, coherent and effective measures to mitigate the effects of lower purchasing power of workers and economic hardships fuelled by considerable increase in commodity price. The 9% offer is not only undesirable but it fundamentally reduces the scope of workers to participate in the economy,” he added. – I-Net Bridge