Engineering wage talks at critical stage

AFTER three rounds, wage negotiations in the metals and engineering sector is set to continue for another two weeks while the National Employers’ Association of South Africa (Neasa) fears strikes erupting nationwide.

Last week, the National Union of Metalworkers of SA (Numsa) confirmed Neasa’s concerns by declaring it will down tools next month if negotiating teams cannot agree on wage increases and better working conditions before 1 July.

But despite reports that heavy machinery manufacturer Bell Equipment has been preparing for any likelihood of protest action at its Richards Bay headquarters, the company said it will not jump to any conclusions at this stage.

‘Wage negotiations are currently underway and are due to be concluded on 27 June, therefore strike action isn’t a foregone conclusion at this time,’ said Bell Group Human Resources Executive, Lucas Maloka.

‘It would be premature for us to comment on what may or may not happen.’

The negotiation process began on 26 March when the Neasa contested the current three-year wage agreement for not having a bargaining council represent the industry majority.

Unions Numsa, Solidarity, the Metal and Electrical Workers Union of SA and the SA Equity Workers Association are demanding a 15% wage increase and a single-year agreement for the 220 000 employees they represent nationwide.

But employer bodies have counter offered an inflation-linked 6.1% increase and lower wages for new companies.

Steel and Engineering Industries Federation of Southern Africa (Seifsa) Chief Executive, Kaizer Nyatsumba, said companies are forced to tread carefully with the current state of the SA economy and tough competition by cheap imports.