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10 July, 2001As the bargaining process has made little significant progress, Numsa reports that major industrial strike action could be close.
SOUTH AFRICA: In a press release issued today, July 11, 2001, the National Union of Metalworkers of South Africa (Numsa), affiliated at international level to the IMF, reports that major industrial strike action in the car industry could be close. Numsa and the Automobile Manufacturers Employers' Organisation (AMEO) are meeting today for a final round of wage negotiations. The parties have not made significant progress since bargaining resumed in May of this year.
AMEO has tabled a 6.5 per cent wage increase across the board and insists on a five-year wage agreement, but the union is demanding a wage increase of 15 per cent and a two-year agreement.
Although the industry's 3.5 per cent increase in productivity is substantial, the union says that the increased income from these profits has not gone to the workers and the employers' side has put little effort into the bargaining talks, "thus putting the whole industry at great risk".
Most of Numsa's demands are based on protecting workers' purchasing power in order to not only boost workers' income but also contribute positively to the economy and the car manufacturing industry. In the last five years, car manufacturing workers have been getting an inflation-related increase, but their purchasing power has been drastically diminishing. A high wage increase would close the wage gap and increase purchasing power.
The unemployment rate among Numsa member households is close to 60 per cent and is way above national South African unemployment figures.
AMEO has tabled a 6.5 per cent wage increase across the board and insists on a five-year wage agreement, but the union is demanding a wage increase of 15 per cent and a two-year agreement.
Although the industry's 3.5 per cent increase in productivity is substantial, the union says that the increased income from these profits has not gone to the workers and the employers' side has put little effort into the bargaining talks, "thus putting the whole industry at great risk".
Most of Numsa's demands are based on protecting workers' purchasing power in order to not only boost workers' income but also contribute positively to the economy and the car manufacturing industry. In the last five years, car manufacturing workers have been getting an inflation-related increase, but their purchasing power has been drastically diminishing. A high wage increase would close the wage gap and increase purchasing power.
The unemployment rate among Numsa member households is close to 60 per cent and is way above national South African unemployment figures.