18 July, 2011The National Union of Metalworkers of South Africa (NUMSA) has reached an agreement with employers ending the two week strike in the metal and engineering sector involving 170, 000 workers, the vast majority of whom are NUMSA members.
SOUTH AFRICA: Workers in the metal sector went on strike demanding a wage increase of 13 per cent, turning down employers' offer of 7 per cent. After days of negotiations and worker actions in the streets, NUMSA pushed employers and finally settled on a 10 per cent increase for the lowest grade and 8 per cent for the artisan grade in the first year of the agreement. For the second and third year of the three year agreement, the wage increase will be 8 per cent for the lowest grade and 7 per cent for the artisan grade for each year, if inflation remains below 8 per cent. Should inflation rise above 8 per cent for either year two or year three or both years, then the increase will be the inflation rate plus 2 per cent.
Whilst NUMSA has not been successful in its demand to reduce the wage agreement from three to two years, NUMSA is satisfied with the wage agreement as workers had mandated the union to not accept an increase less than double digits for the lowest wage.
"Wage negotiations should not be viewed in isolation, but treated as one of the tools to be used to address the triple crisis that our country faces," says NUMSA General Secretary Irvin Jim. "South Africa is the most unequal country in the world in terms of income, and the most concrete way to address this inequality is to close the wage gap. Wage negotiations are the most powerful tool we have in acting decisively on this question."
The negotiations also resulted in substantial gains in other areas, especially with regard to the NUMSA's efforts to combat precarious work. A special National Executive Committee (NEC) held during the strike resolved, amongst other points, that "labour brokers must not be used in the metal and engineering industry because our experience of regulating them in the metal and engineering industry has not resolved the exploitation suffered by workers in the industry."
At the start of negotiations, employers had only been willing to consider regulation of labour brokers but NUMSA has been successful in getting agreement from employers to end the practice of using labour brokers. Workers currently employed through labour brokers will move to limited duration contracts (LDC) of four months, after which a worker will become permanent. Workers under these contracts will enjoy the same benefits as permanent workers. After four months, employers will not be allowed to dismiss one LDC worker in order to replace him or her with another LDC worker.
There have also been positive advances in trade union rights. Employers will allow for four general worker meetings a year at plant level which will be held during working hours. A minimum of five days a year was also agreed to for shop stewards training, and this can be improved through plant level negotiations.
The parties also agreed to take forward discussions on the future development of the manufacturing industry in South Africa and job creation. These discussions will build on a framework that is already in place and be taken forward through the industry policy forum.