South African steel producer Iscor on Thursday confirmed that it has reached an agreement on a final wage offer with the National Union of Metalworkers of South Africa and United Association of South Africa.
The company said it has successfully concluded wage negotiations with its two representative trade unions, but is still awaiting a response from the Solidarity trade union, which is expected to consult its membership on Iscor’s wage offer this weekend.
The company said its wage offer comprises dual components: a guaranteed increase on basic remuneration and a variable performance component, which is based on the achievement of individual and operational targets.
The final negotiated wage settlement consists of a guaranteed 5% salary increase and the variable pay component, which could amount to a total of 8,5% increase for lower salary grades and a 6,9% increase for higher grades in the company’s employee bargaining category.
The company added that the settlement also contains a mechanism to create parity among comparable jobs at the company’s various operations.
Consequently, employees who are earning above the maximum of their salary grades will, in lieu of the salary increase, receive a one-off payment equivalent to 12 times the monthly increase they would have earned.
This will apply for two subsequent years, in which the one-off payment will equal six times the monthly increase they would have earned. It is expected that within this three-year period their salaries will once again fall within their respective ranges due to the overall salary grade adjustments.
Iscor’s corporate affairs executive, Phaldie Kalam, said the company is delighted that a wage settlement has been reached with the participating labour unions, particularly since the parties saw fit to extend the agreement over the next three years.
The current wage settlement will therefore be applicable until 2007 and guarantees a wage increase of CPIX for Iscor employees in the bargaining category over and above the variable performance pay employees can earn.
Iscor conducts independent wage negotiations with its representative trade unions and these do not form part of the Steel Engineering Industry Federation of South Africa negotiations currently taking place. — I-Net Bridge