Labour court dismisses Macsteel’s urgent application to interdict Numsa strike

The labour court on Wednesday dismissed the urgent application filed by Macsteel to interdict a strike by the National Union of Metalworkers of South Africa (Numsa).

Numsa members working at the steel manufacturer have been on strike since 28 May due to a 20% reduction of salaries allegedly without union members being consulted.

Numsa has welcomed the judgment handed down by the court.

Macsteel had applied for an urgent interdict on 29 May.

Numsa said in a statement: “Macsteel has been operating at 50% capacity since the lockdown and it argued in court that the salary reductions were necessary given the severe impact that the Covid-19 lockdown has had on its revenue, and therefore it took a decision to cut salaries for the months of May, June and July without workers’ agreement.

“In handing down the judgment, the judge found that the unilateral decision to reduce salaries for the months of May, June and July by 20% constituted a change in terms and conditions of employment. The court stated that: ‘Salary is a quid pro quo for work rendered and any change that has the effect of changing an employee’s salary or remuneration package, constitutes a change to terms and conditions of employment’.”

The union said Macsteel management had refused to guarantee payment of the full salary of employees who had worked full time during the lockdown.

“In its application, management failed to distinguish between those who had worked and those who were forced to stay home. Macsteel wanted to rely on its pending application to the UIF Covid-19 Temporary Employee Relief Scheme (TERS) Fund to pay salaries but it refused to guarantee payment if the TERS failed to pay the salaries of workers who had worked throughout the lockdown. For this reason, the court found that there had been a unilateral change to conditions of employment,” the union said.

Numsa said it hopes that the judgment would lead to the manufacturer’s management realising their errors and “meaningfully” engaging with the union “on the challenges they are facing financially”.

“Covid-19 is affecting all of us and it is in all our interests to find a solution which will be mutually beneficial to all parties. “

(Compiled by Makhosandile Zulu)

For more news your way, download The Citizen’s app for iOS and Android.