Two trade unions have rejected a guaranteed 5% pay hike offer by steel manufacturer Iscor, setting the stage for a strike.
Solidarity and the United Association of South Africa (Uasa) said on Friday they have declared a dispute with Iscor.
On Thursday, Iscor said it is offering workers a guaranteed 5% rise, which could increase to 8,5% for lower grades, or 6,9% for higher grades, depending on performance.
This offer exceeds the CPIX (consumer price inflation excluding mortgages) and is ”fair and reasonable”, said Iscor.
”Any talk of industrial action is premature … We will keep all communications channels open,” the company said.
Uasa spokesperson Pierre Bezuidenhout said 2 000 members of the association will not benefit as a result of the offer.
”This category of people will not receive any increase and this is undermining our efforts,” he said.
Solidarity spokesperson Reint Dykema said 884 of its members will not receive a salary increase because of the offer.
”The problem with Iscor’s offer is that it excludes 884 workers who do not qualify for an increase because their merits are above the compensation scale,” Dykema said.
He said workers who are above the compensation scale will only receive an increase of 5% on benefits such as housing, medical care and pension.
”In practice this entails an increase of between only 1% and 1,5%. Solidarity asked for an increase of 8% on the salaries of all workers.”
The National Union of Metalworkers of South Africa (Numsa) could not be reached for comment.
Numsa, Solidarity and Uasa are the three unions involved in the wage dispute.
Bezuidenhout and Dykema said leaders of their unions will consult their members to seek a mandate on whether to embark on a strike. — Sapa