Unions, metal industry sign landmark 3-year deal

Employers in the steel and engineering industry expect to be fully operational by tomorrow. The industry says it has reached a landmark three-year wage deal with the six unions in the sector.

However, the National Union of Metalworkers of South Africa (Numsa) is yet to sign the settlement agreement. The agreement will see bottom grade workers receive a 9% increase, while artisans will get 8%. Workers will get a further increase of between 7% and 8% in the next two years. Brian Angus, the Steel and Engineering Industry Federation of South Africa (Seifsa) executive director, says it is the first time that a three-year wage agreement is reached.

For Numsa members the strike continues. The union says its members will only return to factory floors if they agree to the wage deal. The strike affected about 9 000 companies across the country and severely affected the motor industry, forcing some production areas to shut down, as manufacturing at some companies was disrupted. Also added in the wage agreement is for improvements in severance pay and afternoon shift allowance.

The negotiators have also agreed to guidelines in Employee Share Ownership Schemes. Solidarity, the other big union in the sector, yesterday signed the three-year wage agreement and its members returned to work today. Numsa says it has recommended to their members to accept the offer but will wait for feedback.