The first round of wage talks between the National Union of Metalworkers of South Africa (Numsa) and steel producer Iscor (ISC) hit a snag on Monday.
The trade union said the company offered a “starvation” 4,4% wage increase across the board.
The parties are expected to meet again on June 24. The union is demanding 8% for the lowest grade workers and 5% for workers earning above the maximum rates.
The wage negotiations between the two parties are to determine the increases for all production workers this year.
The union reports that total employment at the steel group stands at 12 000 from 44 000 in the 1980s. Numsa has accused Iscor of being disingenuous.
“They failed to honour better wage increases in the midst of intense restructuring and an unstrategic merger. It is sad that the company has not changed from its imperious approach to wage issues. The company remains recalcitrant over the wage issue and there was no change of heart to give sufficient increase for workers,” Numsa spokesperson Dumisa Ntuli.
Ntuli added that it is wrong and naïve for the company to keep wages down because that has not saved jobs.
“The low pay received by workers has not stemmed the rise of unemployment to over 40%. It will make sense for Iscor to pay better wages to cushion for the effects of job losses, unemployment, increases in fuel and food prices,” Ntuli noted.
He stated that for the next meeting the union was preparing to declare a dispute given the company’s unwillingness to meet the wage demand.
“We think that the company has failed to handle the issue properly. The behaviour of the company has been irresponsible,” he said.
Numsa added that it was distressed by the company’s strange attitude to ignore the only wage demand.
“We trust and hope that sanity will prevail on the part of the company in the meeting scheduled for June 24 and they will start to respond to the only wage demand. After this meeting if the company continues with this unreasonable attitude, we have no choice but to use the strike action as a tool to fight the company,” Ntuli said.
Attempts by I-Net Bridge to obtain a response from Iscor were unsuccessful. – I-Net Bridge