Annual Wage Increases
Details of the industry wage increases effective from 1 July 2012

METAL INDUSTRY WAGE INCREASES

SEIFSA is pleased to announce that the industry’s annual wage increases effective from 1 July 2012 have been finalised in accordance with the wage model agreed with the trade unions in 2011. The increases range from 7% at Rate A to 8% at Rate H. There are no further changes to employment conditions. 

The agreed increases for all grades and sectors have been calculated by reference to the following wage model:

• Rate A: 7% and Rate H: 8%
• However, if the CPI (April figure published in May) is 8% or above then the actual wage adjustment will be based on CPI (April figure published in May) plus 2% respectively.
• Because the CPI figure for April 2012 was 6.1%, the agreed minimum increases of 7% to 8% for Rates A to H have been applied. 

Wage increases finalised

The wage increases detailed in Appendix A must be implemented by all companies from 1 July 2012.

No other changes to current employment conditions

SEIFSA is pleased to report that there are no further changes to employment conditions for this second year of the three year agreement and that all other terms and conditions of employment remain unchanged.   

Gazettal of the wage rates 

The wage rates effective from 1 July 2012, concluded in the Metal and Engineering Industries Bargaining Council in 2011, are legally binding on all employers and scheduled employees in the industry in terms of section 31 of the Labour Relations Act, 1995 (Government Gazette No. 34613 No. R. 748 dated 23 September 2011).

Wage exemptions

The industry’s current wage exemption procedure continues to apply. A company that is unable to implement the agreed wage increase may submit an application to its local Regional Council for exemption to implement a lesser wage increase than that detailed in Appendix A.

The wage exemption procedure is outlined in Appendix B

A company wishing to apply for an exemption must refer to the SEIFSA Management Brief ‘Wage Increase Exemptions’ containing the pro-forma wage exemption application questionnaire and management guidelines.

Management is reminded that all wage increase exemption applications must be lodged with the bargaining council by 31 July, 2012. This means that companies wishing to apply for exemption must do so without delay and at least by 31 July, failing which the trade unions may refuse to consider any such late applications.

Click on the file links below to read the full documents..