Arms manufacturer Denel was on Tuesday ordered to pay its workers a 9,5% salary increase backdated to July 2003, trade union Solidarity said.
It said Denel has, for months, been refusing to pay its workers the 9,5% pay rise as agreed upon by the firm and several trade unions whose members work for Denel.
The company wanted to pay its workers 4,5%. However, the Metal and Engineering Bargaining Council (MEBC) ordered Denel to adhere to the agreed percentage.
”This will definitely serve as a warning to other companies that prior agreements have to be implemented,” Solidarity chief secretary André Vermaak said in a statement.
”The Bargaining Council’s decision is a great victory for organised labour within Denel,” he said.
Vermaak said Denel undertook to carry out the pay hike from July last year. It was the first time after 36 years that Denel employees to part in protest action against the company.
The MEBC rejected an application from Denel, Irenco and Vector all of which wanted to be exempted from a wage pact that was agreed upon in the past, the United Association of SA (Uasa).
”In terms of the ruling, workers must receive the full increase of 9,5% to 10,5%,” said Manie de Kock, a general manager at Uasa.
He said his organisation was satisfied with the ruling from the MEBC.
”Denel’s efforts to change the agreement unilaterally, is unacceptable.
”The (MEBC) ruling … reflects the right of workers to protect their rights and to ensure that employers honour their employment agreements with workers at all times,” he said.
Solidarity, Uasa and the National Union of Metalworkers of South Africa embarked on protest action last year to force Denel not to unilaterally amend the wage agreements.
De Kock said: ”The unions took a strong stand and refused to allow Denel to renege on its word.
”It was decided to oppose the application by lodging a complaint with the Commission for Conciliation, Mediation and Arbitration (CCMA).
”The original agreement provided for a wage increase for workers of 9,5% to 10,5%.
”After the agreement had been concluded, Denel altered it unilaterally to the extent that only 4,75% to 5,25% was paid to workers.
”Now, Denel will be obliged to pay back the difference to workers at Irenco, Vector and Denel Aviation with retrospective effect from the date of the agreement — that is 1 July 2003,” he said. – Sapa