The National Union of Metalworkers of South Africa (Numsa) and the steel producer Iscor are expected to resume crucial wage talks on Monday.
The wage negotiations between the two parties will determine the wage increases for all production workers this year.
Total employment stands at 12 000 from 44 000 in the 1980s. The union is demanding CPIX plus 11% improvement factor across the board.
“It is likely that the talks will be difficult taking into account that the company wants to minimise labour costs and maximize profits for shareholders. The company has already frustrated and demoralised workers with all the retrenchments and the news that LNM will increase its stake to above 50%,” Numsa spokesperson Dumisa Ntuli said.
The Competitions Tribunal has approved the merger between LNM, the world’s second-largest steel producer, and Iscor.
Ntuli added that many workers do not see a great future with the company.
“Employment in the company is shrinking and remains highly precarious. We only hope that the company would not violate the spirit of the collective bargaining by refusing to give an increase that will be fair as to cushion for the effects poverty and unemployment.”
Numsa said the response of the employer in the past has not been dignified and rational, which precipitated a number of industrial actions.
The trade union believes that the current demand of CPIX plus 11% across the board is scientific and it falls within the required economic explanation.
The union argues that the increase in the prices of commodities has not been consistent with wage improvements.
“Many workers remain cash-strapped and there is no upward mobility in their economic lives as a result of anomalies in pay. By and large, workers remain in the same circle of poverty,” Ntuli said.
“The wages in the company have not been broad-based to accelerate the closing of the wage differentials and addressing economic difficulties. We trust and hope that sanity will prevail on the part of the company to meet all the only wage demand. We also hope that the company will change its imperious approach to collective bargaining.” — I-Net Bridge