Lucio Trentini

SEIFSA affiliated associations declare dispute against Numsa for refusing to accept settlement offer

The SEIFSA Council at its meeting today unanimously agreed to declare a counter dispute against the National Union of Metal Workers of South Africa (NUMSA) for refusing to accept the proposed Settlement Agreement tabled at the last negotiating meeting held on 28 July 2021.

The Settlement Offer is based on the four inter-related pillars namely: duration, wage increases, extension and a special phase-in dispensation aimed at encouraging greater support for centralised collective bargaining which is now, more than ever, needed to ensure the survival, recovery, growth and sustainability of the industry in an environment of industrial peace, stability and certainty.       

The offer sees workers receiving a 4,4% increase this year, a CPI plus 0.5% increase in 2022 and CPI plus 1% increase in 2023.

The 4,4% adjustment this year translates to the following impact on the industry’s general wage table:

As part of the proposed agreement a special phase-in dispensation will be offered to employers who are currently paying below the current minimum rates and are not members of an employer organisation that is a party to the main agreement.

Employers who are paying at or above 60% of the current minimum rates on the 1 July 2021 will have ten (10) years to phase-in to 100% of the minimum rates and employers who are paying below 60% of the current minimum rates on 1 July 2021 will have 5 (five) years to phase-in to 60% of the minimum rates and thereafter ten (10) years to phase-in to 100% of the minimum rates.

With NUMSA having registered their dispute on Thursday, 29^th July and the SEIFSA affiliated Employer Associations’ lodging their dispute today, the Bargaining Council in accordance with its Constitution, has scheduled a Special Management Committee Meeting on Tuesday, 10^th August between all the negotiating parties in order to decide on how best to progress the deadlock.

SEIFSA on behalf of its affiliated Employer Associations remains committed to continuing negotiations with a view to finding common ground.

We will continue to keep all members fully informed as developments unfold.

L Trentini, SEIFSA

by Lucio Trentini

Numsa registers a deadlock in response to SEIFSA’S offer aimed at supporting the industry's survival and recovery

Negotiations on the 28 th July held between SEIFSA representing the 18 affiliated Employer Organisations, NUMSA, Solidarity, UASA, MEWUSA and the SAEWA at the MEIBC, facilitated by a Senior CCMA Commissioner, ended with NUMSA registering a deadlock in response to SEIFSA’s offer aimed at industry survival, growth and recovery against all the Employer Organisations on the Bargining Council, namely NEASA, SAEFA and CEO excluding PCA (SA).
South Africa is still counting the costs of the looting and destruction that took place in KZN and parts of Gauteng, but already, initial estimates put the damage at 0.4%- 0.85 of GDP, equating to about R50bn

On the back of what unfolded over the last two weeks business confidence generally took a huge knock and it is expected that investors and business owners will be even more reluctant to reinvest in the sector. The protagonists of last week’s looting have truly set this industry back in dealing with the survival and recovery of the sector.
There will be job losses adding to those already lost from the pandemic and unemployment will once again soar in the months to come. While some businesses may have the balance sheets to rebuild their factories, small
businesses and manufacturers which are job centered will struggle to get back on their feet and some may never return. Outside of KZN and Gauteng factories across the industry have been significantly affected by supply chains, logistics, rail and port disruptions and the knock-on effects will be felt across the sector for quite some time and continues to negatively impact business confidence.

The SEIFSA conditional offer is based on the four key and inter related pillars namely: duration, wage increases, extension and a special phase-in dispensation aimed at encouraging support for centralised collective bargaining which is now, more than ever, needed in order to ensure the sustainability of the industry in an
environment of industrial peace, stability and certainty. The conditional offer presented to the unions is founded on a three year window with increases in year 1 being linked to a 4,4% increment linked to CPI and in year 2022
receiving a guaranteed increase of CPI plus 0,5% and in 2023 CPI plus 1%. The conditional offer in year 1 translates to the following impact on the industry’s general wage table:

As part of the proposed agreement a special phase-in dispensation has been formulated and will be made available to employers who are currently paying below the current minimum rates and are not members of an employer organisation that is a party to the main agreement, on the proviso that any such employer can prove membership of an employer organisation that is a party to this settlement agreement. Employers, as referred to above, who are paying at or above 60% of the current minimum rates on the 1 July 2021 will have ten (10) years to phase-in to 100% of the minimum rates and employers who are paying below 60% of the current minimum rates on 1 July 2021 will have 5 (five) years to phase-in to 60% of the minimum rates and thereafter ten (10) years to phase-in to 100% of the minimum rates.

With NUMSA registering its deadlock today and the other trade unions, for the time being, not following suit the SEIFSA Negotiating Team will revert back to the SEIFSA Council on Monday, 2 August to report back and take a view of the best possible way forward. All the trade unions in today’s session have indicated their willingness and availability to continue negotiations with a view to finding common ground. We will continue to keep all members fully informed as developments unfold.

by Lucio Trentini

SEIFSA tables conditional closing offer in effort to clinch agreement

Negotiations on the 12 th July held between SEIFSA representing the 19 affiliated Employer Organisations, NUMSA, Solidarity, UASA, MEWUSA and the SAEWA at the MEIBC, facilitated by a Senior CCMA Commissioner, continued with SEIFSA tabling a conditional offer aimed at clinching an agreement for the industry.
The conditionality of the offer rest on the trade unions being able to recommend acceptance of the offer to their respective membership and the affiliated Associations likewise being able to endorse the package. All parties will report back on Wednesday, 28 July 2021 with their final mandated positions on the matter
The conditional overall package tabled today comprises of the following:

1. Duration: 1 July 2021 until 30 June 2024.
2. Extension: Extension of the agreement to non-party employers and employees will remain a matter that the negotiating partners will continue to apply their minds to.
3. Wage Increases:
   1 July 2021 to 30 June 2022 The schedule wage rates contained in the Main Agreement will be adjusted on
   1 July 2021 across the board by 4,4% on scheduled/ minimum rates (the April CPI year-on-year figure released by Statistics SA) guaranteeing a personal rands/ cents increase calculated on the general wage tables awarded to employees on their actual hourly rate of pay .
   1 July 2022 to 30 June 2023
   On 1 July 2022 the scheduled wage rates will be adjusted across the board by the April CPI (year-on-year figure) as released by Statistics SA at the end of May 2022 plus a 0,5% cost of living adjustment applied across the board on the scheduled/ minimum rates guaranteeing a personal rands/ cents increase calculated on the general wage tables to employees actual hourly rate of pay.
   Issue 6

Date: 12 July 2021
Should CPI come in below 3%, 3% will be implemented across the board; should the April CPI figure come in at or above 6%, 6% will be implemented plus the 0,5% cost of living adjustment in either scenario .
1 July 2023 to 30 June 2024
On 1 July 2023 the schedule wage rates will be adjusted across the board by the April CPI (year-on-year figure) as released by Statistics SA at the end of May 2023 plus a cost of living adjustment of 1% applied across the board on
the scheduled/ minimum rates guaranteeing a personal rands/ cents increase calculated on the general wage tables to employees actual hourly rate of pay. Should CPI come in below 3%, 3% will be implemented across the board;
should the April CPI figure come in at or above 6%, 6% will be implemented plus the 1% cost of living adjustment in either scenario.

4. Clause 37 and Full and Final Settlement: The full and final settlement clause and clause 37 protecting members from being drawn into plant level bargining remains unchanged and will remain in the Main Agreement.
5. Modernising the Main Agreement: A bargaining council drafting committee will be constituted and tasked with modernising and configuring a new Main Agreement.
6. Outstanding items: A number of outstanding items will be placed on the agenda of the bargaining council’s management committee with a view to agreeing on an overall and comprehensive action plan and identification of appropriate committee structure’s to deal with each item and timelines to
   finalise each item.
7. Exemptions: Party employers will be able to submit an application for exemption in-line with clause 23 of the Main Agreement within thirty (30) days of date of signature of the Settlement Agreement. In the years two and three of the Agreement (i.e. 1 July 2022 to 30 June 2023 and 1 July 2023 to 30 June 2024), party employers will be able to submit their applications for exemptions in-line with clause 23 of the Main Agreement to their respective regional bargaining council offices by no later than 31 July 2022 and 31 July 2023 respectively.
8. Special Phase-in Dispensation: A special phase-in dispensation will be made available on an entirely voluntary basis, within sixty days of signature of this settlement agreement, to employers who are currently paying below the various wages tables and are not members of any employer organisation that is a party to the main agreement, on the proviso that any such employer can prove membership of an employer organisation that is a party to this settlement agreement. The special phase-in dispensation will apply to all the wage tables contained in the Main Agreement (i.e. Electric Cable; Structural Engineering; Five Grade; Vehicle Drivers; Gate and Fence Manufacturing) but will exclude Apprentices and Annexure H.

Employers, as referred to above, who are paying at or above 60% of Rate H on the 1 July 2021 shall have ten (10) years to phase-in to 100% of Rate H. Employers who are paying below 60% of Rate H on 1 July 2021 will have 5
(five) years to phase-in to 60% of Rate H and thereafter ten (10) years to phase-in to 100% of the prevailing Rate H.
During the phase-in programme the payment of the leave enhancement pay (leave bonus) shall be paid in accordance with the applicable provisions of the Main Agreement but at the rates being earned by affected employees in each respective company. The payment for annual leave shall be made in accordance with the
applicable provisions of the Main Agreement but at rates being earned by affected employees in each respective company.
All remaining terms and conditions of employment of the Main Agreement, save for the above, including all social security benefit fund arrangements and bargaining council levies shall apply to all party employers on this scheme
with effect from 1 July 2021. Party employers paying below or at and above 60% of Rate H but less than a
100% of Rate H on the 1July 2021, shall have sixty (60) days to prepare and finalise their respective phase-in schedules and submit these, together with proof of membership of a party employer organisation, to their local regional bargaining council offices.

The bargaining council will formally and in-writing acknowledge receipt of each employers phase-in programme, record, store and monitor compliance with each respective programme. Individual employers, referred to above, who may find themselves in a position that they are unable to comply with their respective phase-in
programmes as lodged with the council, will be required to immediately notify their local bargaining council in writing and submit their revised plan and phase-in commitments in order that the council can update its database, store and properly monitor compliance with each respective programme and plan.

9. Backdating: As long as negotiations are continuing in good faith the terms of this agreement will be backdated to 1 July 2021. Alternatively, in the event that good faith negotiations break-down backdating cannot be guaranteed.
10. Set-off: Employers who have implemented wage increases with effect from 1 July 2021 are entitled to set-off the increases against the increases agreed upon in this Settlement Agreement.
    We will continue to keep all members fully informed as developments unfold.

by Lucio Trentini

SEIFSA Firms-up its three year wage offer, on minimums linked to a special phase-in dispensation for industry

Negotiations on the 5 th July held between SEIFSA representing the 19 affiliated Employer Organisations, NUMSA, Solidarity, UASA, MEWUSA and the SAEWA at the MEIBC, facilitated by a Senior CCMA Commissioner, continued with SEIFSA firming-up its offer on a three-year wage deal, on scheduled rates linked to a special
phase-in dispensation for employers in the industry who up and until now have been paying below the current Main Agreement rates.

The SEIFSA Main Agreement Negotiating Team will report back to the SEIFSA Council or Assembly of Associations on Friday, 9 July 2021 with a view to tabling a closing position for consideration by the trade unions.

The trade unions have likewise undertaken to consider what has been presented and negotiations will reconvene on Monday, 12 th July 2021. We will continue to keep all members fully informed as developments unfold

by Lucio Trentini

Papenfus breaches acceptable boundaries of civilised discourse

Papenfus breaches acceptable boundaries of civilised discourse

Neasa’s recent newsletters, SEIFSA the supervillain now wants to be the hero and Beware SEIFSA’s latest scam, have breached acceptable boundaries of civilised discourse.

Neasa CEO Gerhard Papenfus is entitled to his views on collective bargaining no matter how prejudiced, tendentious and selective they may be. He is further entitled to disagree, as strongly as he wishes, with those who do not share his opinions. In his latest diatribe, however, Mr Papenfus has breached all acceptable boundaries of civil and civilised discourse. Not content with demonising and defaming SEIFSA, he has vilified and crassly impugned the integrity of the negotiating parties and processes currently underway at industry level.

In making sundry sneering references to aspects of what is currently before the negotiating parties, he is further guilty of propagating a particular obnoxious form of collective bargaining bigotry. In taking issue with what SEIFSA is attempting to pursue, Mr Papenfus shamelessly plays the man rather than the ball. In common with his fellow anti-collective bargaining protagonists, it is not enough for him to portray those that refuse to support his views as being merely wrong. Instead, he depicts them as being so morally twisted as to make anything they might have to say entirely unworthy of notice. This is a classic totalitarian tactic that anyone genuinely committed to the values of freedom of thought and debate will as a matter of course regard with abhorrence.

Centralised collective bargaining elicits strong opinions on all sides, and the Metals and Engineering Industries deserves a fair, honest debate on the facts of this very volatile and emotional issue. If Mr Papenfus wishes to debate those facts, that is perfectly legitimate. Instead as is his custom, he has resorted to vilifying SEIFSA. Indeed, this approach is one that many enemies of centralised collective bargaining routinely adopt, thereby ensuring that their views, and only theirs, are heard.

Negotiations between the industry trade unions and the employers’ associations federated to SEIFSA continue on 5 and 12 July 2021. As per the mandate given to SEIFSA by its affiliated member associations, SEIFSA remain steadfast in its quest to secure a deal with as little disruption to the industry as possible and SEIFSA will continue to communicate the contents of that deal, not just to our membership, but more importantly to the sector as a whole. We invite Neasa, led by Mr Papenfus, to do likewise.

by Lucio Trentini

SEIFSA tables three-year wage offer, on minimums linked to a special phase-in dispensation for industry

Negotiations on the 21 June held between SEIFSA representing the 19 affiliated employer organisations, NUMSA, Solidarity, UASA, MEWUSA and the SAEWA at the MEIBC, facilitated by a senior CCMA commissioner, ended with SEIFSA tabling a three-year wage deal, on minimums linked to a 15-year special phase-in dispensation for all employers in the industry who may be paying below the current Main Agreement rates as signed off between the five trade unions referred to above and the 19 employer associations affiliated to SEIFSA. 

The wage model envisages wage increase in year three being linked to CPI; year two also being linked to CPI and year one providing for a continuation of the current wage rates as agreed in 2020, which will set the benchmark for companies should they elect to participate on the special phase-in dispensation.

Importantly, wage increases in years two and year three will be calculated on minimum rates which supports the principal embodied in the four pillars presented in the opening round of wage negotiations which envisages wages being linked to duration, which in turn is linked to a special phase-in dispensation which ultimately has the end goal of achieving gazettal and extension.    

The trade unions have undertaken to apply their minds to the offer and the negotiating parties have agreed to a two week cooling off period in order to allow for a continuation of the informal engagement processes that took place between the SEIFSA Main Agreement negotiating team, all the trade unions and other non-party employer organisations in the lead up to today’s session. 

The parties ended the session by agreeing to reconvene negotiations on the 5 and 12 July 2021 with the goal that by then the parties would have addressed and resolved the modalities and finer details of the plan.  

We will continue to keep all members fully informed as developments unfold. 

L Trentini, Operations Director: SEIFSA

by Lucio Trentini

SEIFSA calls for a Metals and Engineering Industries National State of Disaster Support and Recovery Plan

Negotiations on the 3^rd and 4^th June held between SEIFSA representing the 19 affiliated Employer Organisations, NUMSA, Solidarity, UASA, MEWUSA and the SAEWA at the MEIBC, facilitated by a Senior CCMA Commissioner, culminated in the calling for a Metals and Engineering Industries National State of Disaster Support and Recovery Plan in order to afford the industry an opportunity to re-set, reposition and prepare the groundwork for business survival, stability, certainty and industrial peace.

With South Africa’s economic outlook unlike any situation experienced before SEIFSA argued that the time had come for parties to work together and more so, in the area of collective bargining, to construct a collective agreement that has the potential to offer something to everyone. SEIFSA argued that such an agreement could be constructed on four pillars:

Firstly, how do we fairly compensate employees who have endured unimaginable suffering in the last 18 months, whilst at the same time ensuring that employers, who likewise have suffered, are not priced out of the market, leading intentionally or unintentionally to further business failures and job losses;

Secondly, what time span will be needed to achieve this end objective?

Thirdly, under what conditions if any, will non-SEIFSA affiliated organisations be prepared to commit to such a plan; and 

Finally, how best do the architects of this envisaged plan make a compelling case for non-affiliated employer organisations to seriously consider what may be possible and simultaneously and importantly keep the SEIFSA affiliated membership on board?

In closing SEIFSA referred to a nexus or connectivity between the four pillars stressing that if the negotiating partners are able to agree on the detail at the centre of the overlapping points, the MEIBC may just be on the verge of achieving something that has not been achieved over the last ten years, namely a collective agreement that enjoys at best the support of all and at worst the support of most.

With negotiations set to continue on 21^st and 22^nd June 2021, SEIFSA gave notice that it intends to reach out and attempt to work with all employer and trade union stakeholder, testing and challenging traditional and long established paradigms in order to determine whether indeed it is possible to move forward, ideally with the support of all but at the very least with the support of the majority. 

We will continue to keep all members fully informed as developments unfold. 

L Trentini, Operations Director: SEIFSA

by Lucio Trentini

Main Agreement wages and conditions of employment negotiations will formally get underway on 3 and 4 June 2021

At today’s Metal and Engineering Industries Bargaining Council Management Committee Meeting, it was agreed that the Main Agreement wages and conditions of employment negotiations will formally get underway on Thursday, 3rd and Friday, 4th June 2021.

It was also agreed that the negotiations will be facilitated by a CCMA Commissioner and that all Parties will use their best endeavours to conclude an agreement as soon as is practicably possible.

The current Main Agreement concluded between all the Trade Unions and the SEIFSA Affiliated Associations in 2020 remains in force and effect until the 30 June 2021.

The SEIFSA Council appointed Main Agreement Negotiating Team, having presented and been given a broad mandate to reach settlement, will now begin its work in earnest to ensure that everything reasonably possible is done to reach an agreement and deliver an agreement to the membership within the mandate agreed to by the Associations.

We will keep the membership informed as developments unfold every step of the way.

p.p.
Kaizer M. Nyatsumba
Chief Executive Officer
Copy: L Trentini, Operations Director: SEIFSA

by Lucio Trentini

Initiating negotiations for the amendment of an existing agreement in terms of clause 10 and annexure E of the MEIBC Constitution: The Main Agreement

SEIFSA, acting in accordance with the mandate of the affiliated Employer Associations listed hereunder, has, in accordance with Clause 10 and Annexure E (2) of the MEIBC Constitution, formally triggered the commencement of Main Agreement wages and conditions of employment negotiations for the period post 30 June 2021. 

In the space of a year, the dynamics of the traditional Main Agreement Negotiations have changed radically. The ongoing restrictions matched against a fragile economy and spiking unemployment will as was the case last year, again impact on the forthcoming round of Main Agreement negotiations. 

Fourth-quarter economic growth data, which showed that the economy grew at a seasonally adjusted and annualised 6.3%, was not enough to offset the expected slump in full-year GDP, which contracted by a massive 7% in 2020 – the biggest contraction since official records began in 1946 – that’s the worst slump in 75 years. 

The negative growth figure for 2020 as a whole demonstrates how much economic ground was lost last year in terms of widespread business failures and huge job losses – MIBFA alone recorded 16 623 jobs lost in the period between April and December 2020 with a further 4 957 jobs being lost between January and end March 2021. The economy, which is battling record unemployment and continued business failures, is only projected to recover from the negative effects of the global COVID-19 pandemic at best from 2022 and realistically from 2023 and 2024 onwards.

The pandemic and the lockdowns introduced by the Government to help contain its spread have had a devastating effect on the economy, adding to job losses and leading a spike in the unemployment rate that now stands at a record 32,5% – or, if one uses the expanded definition of unemployment (i.e., those eligible to work but who have given up looking for job opportunities), the number would be in excess of 40% of the economically active population. The consensus view amongst economists is that jobs numbers will only return to 2019 levels by 2024, which presents a massive gap to make up in the years ahead.

Negotiations this year will be taking place against a very difficult economic background. The sector is still in the throes of deep distress, compounded by the fact that the economy was already in the doldrums when the pandemic hit due to the then already high unemployment rate and the technical recession. The country has been downgraded to sub-investment or junk status and inequality has increased. 

Consequently, the Employer Associations which are party to the Main Agreement are firmly of the view that a Metals and Engineering Industries National State of Disaster Recovery and Support Plan is desperately needed to afford the industry (specifically our membership) an opportunity to re-set, reposition and prepare the groundwork for business survival, stability, certainty and industrial peace.

Central to this narrative, which will be elaborated upon during the formal negotiation process, is reaching agreement on the duration of the plan and the details accompanying the envisaged agreement. As was the case with last year’s Standstill Agreement, it is our view that all remaining terms and conditions of employment, as currently contained in the Main Agreement, must remain unchanged. 

We wish to stress at the outset that it is not the intention of our member Associations to vary downwards current terms and condition of employment.  Equally important to this approach is the non-negotiable position of the membership to retain, safeguard and protect Section 37 of the Main Agreement. 

Under the prevailing circumstances, it is worth remembering that the conclusion of last year’s historic Standstill Agreement was the first of its kind in traditional industry collective bargaining arrangements. It marked a watershed moment when business and labour together recognised the devastating impact which the COVID-19 pandemic has had on companies and employees alike across the sector. With the possibility of a third COVID-19 wave impacting on our sector as we inch towards winter, and with economic conditions set to possibly worsen before they get better, it is imperative for all of us to do everything possible to save our industry, to keep companies from closing and to preserve jobs. 

Registered Employer Organisations’ Federated to SEIFSA and Party to the MEIBC 

• Association of Electrical Cable Manufacturers of South Africa
• Association of Metal Service Centre of South Africa
• Cape Engineers’ and Founders’ Association
• Constructional Engineering Association (South Africa)
• Electrical Engineering and Allied Industries’ Association
• Electrical Manufacturers’ Association of South Africa
• Gate and Fence Association
• Hand Tool Manufacturers’ Association
• Kwa-Zulu Natal Engineering Industries’ Association 
• Iron and Steel Producers’ Association of South Africa
• Lift Engineering Association of South Africa
• Light Engineering Industries’ Association of South Africa
• Non-Ferrous Metal Industries’ Association of South Africa
• Eastern Cape Engineering and Allied Industries Association
• Refrigeration and Air Conditioning Manufacturers’ and Suppliers’ Association
• S.A. Electro-Plating Industries’ Association
• S.A. Refrigeration and Air Conditioning Contractors’ Association
• S.A. Pump Manufacturers’ Association
• S.A. Valve and Actuator Manufacturers’ Association

p.p. 
Kaizer M. Nyatsumba
Chief Executive Officer

Copy: L Trentini, Operations Director: SEIFSA

by Lucio Trentini