/ 21 August 2003

Motor-industry strike averted

After a two-month roller-coaster ride that has included declared disputes, failed compulsory mediation and a strong threat of a strike attempt, the Retail Motor Industry (RMI) and the three relevant trade unions on Thursday ratified a new wage agreement for the sector in what has been described as “a triumph of discussion”.

The parties met at the offices of the Motor Industry Bargaining Council in Randburg to formally confirm the agreement incorporating the details of the deal struck late on Monday between RMI and the National Union of Metalworkers of South Africa (Numsa), the Metal Industry Employees’ Union and the Motor Industry Staff Association.

Jakkie Olivier, the executive director of RMI who led the RMI’s negotiating team, said his delegation had constantly emphasised the point that industrial action to resolve issues was a lose-lose position.

“It’s bad for business and its bad for labour. Even a failed strike attempt is a disruption, which erodes the capacity of employers to improve wages for its labour force. An effective, longer strike becomes disastrous.”

He said there were two major elements of the breakthrough. First was the acceptance and understanding ultimately by all parties that a single-across-the-board solution (for instance negotiating on actuals instead of minimums for the whole sector) was not possible against the background of an industry that was remarkably complex, and where one solution could not suit all.

The agreement reached this week was achieved by RMI granting an increase on minimums with the addition of an agreed minimum guaranteed increase for all workers, with only one exception.

Secondly he praised the members of RMI’s labour chamber for their efficiency, professionalism and realism in being constantly supportive of the negotiators and delivering innovative, strong and practical mandates to the talks whenever required.

The industry negotiations this year centred only on wage increases, and not on other substantive issues. Discussions opened in June with Numsa declaring a dispute early last month immediately after the first round of talks — an unprecedented and highly disruptive step, according to Olivier.

Three prescribed dispute meetings were held, and failed, and compulsory mediation took place on July 24 and 25. These also failed, and at that point Numsa could technically have exercised its right to call for industrial action within 48 hours.

From then onwards, until resolution was reached this week, Olivier said the real triumph was in the willingness of everyone to keep on talking and striving to avoid the implementation of a strike call.