Numsa and ArcelorMittal reach above-inflation wage agreement

The National Union of Metalworkers of South Africa (Numsa) has signed an above-inflation increase for all workers at steel giant ArcelorMittal South Africa.

Workers in plants across the country had downed tools on 11 May, demanding higher wages and improved conditions.

Numsa officials met with ArcelorMittal executives to discuss a revised offer from the steel manufacturer.

Workers have agreed to a 6.5% increase across the board.

“The increase means that allowances will also increase by 6.5%. Workers will also receive a once-off cash payment of R5000,” said the union in a statement.

The agreement comes into effect on 1 April 2022, and it expires on 31 March 2023.

“We are serious about working with our stakeholders to create mutually beneficial outcomes and the agreement that has been reached with the unions is a testament to the commitment of all parties to move the business forward rather than getting stuck in an unfortunate wage dispute that does not serve anybody, especially our employees,” said ArcelorMittal South Africa’s Chief Executive Officer, Kobus Verster.

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The increase will be backdated to 1 April and will be payable on the normal payment date for the month of June 2022.

Allowances will also be backdated and paid in June.

Parties agreed to investigate other incentives for an employee incentive share scheme including ESOP and the KPI bonus/Gainshare.

“This agreement is a victory for all Numsa members who made the ultimate sacrifice to fight for improved wages and conditions. They did not do this only for themselves, but also, for future generations of workers as well,” said Numsa.

The increase comes after tense negotiations and court action from the company.

ArcelorMittal accused Numsa of failing to address numerous acts of violence and intimidation against its non-striking workers.

The company has also refused to accept a memorandum from demonstrators who’d marched to its offices in Vanderbijlpark on Tuesday.

Both Numsa and Solidarity had originally demanded a 7% increase with a R5,000 once-off cash payment.

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