20 September, 2010
Despite two full days of bargaining between ICEM affiliate, the National Union of Metalworkers of South Africa (NUMSA), and the New Tyre Manufacturing Employers’ Industry Association (NTMEIA) on 16-17 September, no accord was reached to end the three-week old strike. Some 6,000 rubber workers have been on strike at six tyre factories operated by four employers since 29 August.
Today in Port Elizabeth, 4,000 NUMSA members from tyre plants in the Eastern Cape will march in protest of rapt division among employers in this year’s wage talks. They will present a petition to management at the plant gates of Bridgestone-Firestone in Port Elizabeth this afternoon.
In last week’s talks guided by an independent mediator in Port Elizabeth, management of the Japanese-based company continued to deviate widely from the wage offers put forth by other tyre companies associated with the NTMEIA. While Continental, Goodyear, and Apollo-Dunlop of India placed on the table a three-year package containing wage increases of 9%, 7.5%, and 7.5%, Bridgestone-Firestone’s offer was 7%, 5%, and 5%.
Rubber workers of NUMSA are willing to accept a three-year pact, but their wage expectations are 9% in each of the three years. In addition, they seek a modernized wage module that will lift the salaries of workers who have been stuck at minimum levels for as long as 10 to 15 years.
Another key issue at the bargaining table revolves around the use of labour brokers. Although the NTMEIA will not agree to a ban, it has conceded to pay contributions for short-term and temporary workers into the Provident Fund, as well as make retirement and medical payments for them. The South African tyre industry employs about 1,000 such workers.
Also last week in South Africa, 70,000 NUMSA members across the country returned to their jobs at fuel retail outlets and auto component shops. On 14 September, NUMSA convened a special National Executive Committee meeting, where eight of nine regional structures of the union agreed to accept terms of the Retail Industry Motor Association and the Fuel Retailers’ Association, ending strikes that began on 1 September.
The three-year contract for filling station attendants includes wage gains of 10%, 9%, and 8%, while auto-parts workers will receive 9%, 8%, and 8%. NUMSA did achieve a solid breakthrough regarding labour brokers, particularly in these sectors in which several employers are totally reliant on staff provided by outside hire firms.
The agreement calls for all labour brokers to be registered by one of two certifying agencies, and all staff of labour brokers must receive minimum rates of pay inside the two industries as well as getting the same benefits and condition of employment. In addition, the negotiated settlement calls for the gradual phase-out of labour brokers, with a cut to 35% of current levels by the year 2013.