Close to 21 000 members of the National Union of Metalworkers of South Africa (Numsa) are likely to embark on strike action on July 26 if a meeting between union representatives and car-manufacturer CEOs does not bring results next week Tuesday.
The wage deadlock continues as the Automobile Manufacturers Employers’ Organisation’s wage offer remains unchanged at 6,5% across the board. The union is demanding 9% across the board.
Numsa remains defiant that car manufacturers can afford its wage demand because of their export deals.
Numsa general secretary Silumko Nondwangu said that South African car manufacturers should bear in mind that in Germany there is a profit-sharing agreement between unions and management.
He further argued that the inflation-linked increases argument is a fallacy because interest rates are still high.
“We believe the 6,5% wage offer is not only a distortion but also an obfuscation of what employers can offer in the industry. There is no point of negotiating a wage increase when these increases will remain at a low base in the wage pockets of workers.”
More protest action in motor retail industry
Meanwhile, wage talks between Numsa, the Fuel Retailers Association and the Retail Motor Industry remain deadlocked with no end in sight.
The union declared a dispute last month when the two employer organisations failed to make a wage offer.
Nondwangu on Thursday said the union will resume protest actions all over the country. The first protest action is expected to take place on July 20 at Caesars Palace in Kempton Park.
The wage talks cover 180 000 workers at petrol stations, component manufacturing, car dealers and panel-beating shops.
Nondwangu accused the motor retail employers of failing to break the impasse.
“Unless the dispute is expeditiously resolved, we remain on constant course to continue with protest actions. We want the employers to completely move away from a nefarious agenda of paying workers minimum rates,” he added.
Numsa said it is not carried away by the lower inflation rate, but said the question is whether the employers are prepared to put a percentage increase on the table that is realistic and achievable.
Numsa spokesperson Dumisa Ntuli said over the past 10 years the wage increases on minimum rates “remain on paper” and 80% of workers lose out and only a marginal 20% benefit from the increase.
Steel workers to march
In a last effort to avert strike action, Numsa on Thursday also said it will meet the Steel Engineering Industry Federation of South Africa (Seifsa) on July 23 for another round of wage negotiations.
Ntuli said if the dispute remains unresolved, the Engineering Bargaining Council will issue a deadlock certificate for the union to strike.
Ntuli said in anticipation of a negative response from employers, workers in the steel and engineering industry will march through the streets of Johannesburg on July 29.
The protest march is part of the union’s effort to compel Seifsa to meet demands for a 12% wage increase. The employer federation has put a 4,7% wage offer on the table.
Ntuli argued, however, that the 4,7% wage offer is not backed by any economic evidence that it can cushion wages of workers against the effects of inflation, unemployment and poverty.
“This is a miserable percentage offer that falls below the wage pockets of workers. Most of the steel and engineering workers spend most of their money buying food. The food price index currently stands at slightly above 15%,” he said.
Other news
Numsa also on Thursday gave updates on other wage negotiations in which it is involved:
Numsa has formally declared a dispute with Highveld Steel’s Witbank plant following a 5% wage increase offer by management. The trade union said the dispute will be conciliated by a third party. Numsa is demanding a wage increase of 7,5% for all workers, and is also advocating that training should take place during working hours and that workers must be paid for these periods. The union is also demanding that shop stewards be released to attend training and that health and safety measures be put in place.
Numsa is still consulting its members on the 5% wage increase offer from South African steel producer Iscor. The union is demanding 8% for workers earning below maximum rates and 5% for workers earning above maximum rates. Numsa and Iscor have not yet signed a deal on wages. Nondwangu accused the company of failing to live up to its promises of remunerating workers according to its 2002 business plans. Iscor said that it has tabled a wage offer comprising dual components: a guaranteed increase on remuneration and a variable pay component, which will be based on the achievement of individual and operational targets.
Workers at utility company Eskom are angry at the sudden refusal of the company to pay for hard years of service (a gratuity). Numsa’s Ntuli said according to an agreement concluded in the last quarter of 2003, workers must receive between R4 000 and more than R100 000 as a gesture for their contribution to the company. “Workers were disturbed by the golden handshake payout of R27,4-million to the executive director, WJ Kok. This also comes in the face of managers and directors dividing R176-million amongst themselves last year,” Ntuli stated. Attempts by I-Net Bridge to get a response from Eskom were unsuccessful.
— I-Net Bridge