Emergency contact details

Lucio Trentini    082 449 6270   
Rajendra Rajcoomar  083 788 1386 
Louwresse Specht  082 303 2213
Michael Lavender  082 459 7678 
Theresa Crowley 082 725 6717
Palesa Molise 083 507 2746
Nuraan Alli    083 415 2780

SEIFSA CEO Message

I write this message toward the end of an extremely challenging year not only for SEIFSA and its affiliated member companies, but also for the South African economy. The socio-economic aspirations of millions of South Africans, particularly of those on the fringes of the formal economy have taken a knock.

As such, with the culmination of 2021, we assume a reflective posture on the damage visited upon the economy and the socio-economic fibre of the country primarily by the unrelenting COVID-19 pandemic, the July unrest as well as the recent three-week strike in the metals and engineering sector. It sure does seem that there is very little to celebrate about the state of country and economy at this stage with very few glimpses of a promising socio-economic outlook.

It bears revisiting the damage caused by the COVID-19 pandemic on the lives of millions of South Africans. In the past, we have dealt a lot on the economic repercussions of the ongoing pandemic. However, we are beginning to take a lot more seriously the impact of the pandemic on human life and psyche. As a sector, we are deeply indebted to the hundreds of thousands of workers who have braved the frontline while dealing with the scars of the pandemic which has affected them directly and indirectly. They have shown remarkable resilience while companies have been forced to lay-off workers because of the pandemic. I am particularly pleased by the support of employers in the sector which they have extended to their workers in confronting the socio-economic ravages of the pandemic.

Similarly, the recent looting and unrest in July which affected mainly the economic hub of Gauteng and KwaZulu/ Natal did very little to quell and calm the jitters of investors as economic infrastructure was decimated in full view of the world’s eye. This has dealt untold socio-economic harm to the economy and on the businesses of our membership. We will continue to support our members which have been affected by the looting episode to ensure that they are able to revive operations and that they are on the road to a more prosperous future.

There seems to be no real silver lining in the horizon! However, the status quo demands an optimistic citizenry and cadre of entrepreneurs that will drive the change we wish to see. But, there are small, encouraging but minute signs of economic recovery as fresh economic data emerges.

Statistics South Africa recently stated that he South African economy recorded its fourth consecutive quarter of growth, expanding by 1,2% in the second quarter of 2021 (April–June). This followed a revised 1,0% rise in real gross domestic product (GDP) in the first quarter (January - March). Despite the gains made over the last four quarters, the economy is 1,4% smaller than what it was before the COVID-19 pandemic.

These figures cover the months of April, May and June. This means that the economic impact of the wave of severe economic disruption in KwaZulu-Natal and Gauteng, will only reflect in the third quarter GDP results that are due for release in December.

While the StatsSA figures indicate a sudden drop in economic activity during the second quarter of 2020 when lockdown restrictions were at their most severe, the economy has seen consistent growth since that shock, but not enough to return to pre-COVID-19 levels. Real GDP was R1 131 billion in the second quarter of 2021, 1,4% down from the reading in the first quarter of 2020.

Perhaps more daunting was the recent three-week strike which saw thousands of workers in the sector lay down their tools in order to demand a ‘better’ wage deal for themselves. The team at SEIFSA pulled out all the stops to ensure that a fair deal was achieved for employers.

I am grateful to the SEIFSA team for their unfailing dedication during a very stressful time. I am equally thankful of the Associations for their contribution, support and understanding in supporting a fair deal which protects the interests of employers and employees. I also extend gratitude to employers for their patience in a difficult negotiation environment.

We are also mindful that strikes rarely benefit any party. Workers take a knock on wages and some lose their jobs while employers lose millions in lost production and revenue. To arrive at a workable and fair deal, requires the effort of all parties on both ends of the negotiating table to negotiate in good faith and in the interests of the industry. We are thus thankful to all the unions for their dedication in doing their share to finding a just and fair deal for all.

SEIFSA is pleased that it has concluded a good deal for its members which has resulted in the constitution of a three-year wage deal which guarantees industrial relations peace, certainty and stability for all member companies until 30 June 2024.  The deal was struck on 21 October 2021 on behalf of all SEIFSA’s affiliated member companies.

This agreement followed a challenging negotiation and dispute-resolution process which comprised several formal, informal and bilateral meetings which commenced in May and ending with NUMSA signing the Settlement Agreement ending the three-week strike.

From a SEIFSA perspective and that of its Associations and membership, we are doing our bit in helping revive the fortunes of a manufacturing sector which finds itself in a precarious position. Recent manufacturing data is pointing towards the promise of an upward trajectory in the sector which should bode well for growth, improved revenue generation and sustainable jobs within the sector. We will continue to empower our Associations with support tools and interventions which should translate to a resilient membership base which continues to navigate and negotiate what is undoubtedly treacherous economic terrain.

We wish all our members, Associations and stakeholders a joyous and safe festive season as most companies approach the year-end shutdown. We are pleased to have travelled this journey with you in 2021 and we look forward to more support and collaborative energy in tackling the challenges facing the industry. I remain optimistic that 2022 will be a far better year than the one we have survived, with hopefully sustained growth and uninterrupted production being the order of the day for all of us!


SEIFSA concerned by further rise in unemployment numbers for the third quarter of 2021

Johannesburg, 29 November 2021 - The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is concerned by data released by Statistics South Africa (Stats SA) today, showing a further increase in the unemployment numbers in the domestic economy.

According to the latest Quarterly Labour Force Survey (QLFS), the data indicates that there is an increase in the unemployment numbers in the broader domestic economy on a quarter-on-quarter basis from 34.4 percent in the second quarter of 2021, to a high of 34.9 in the third quarter of 2021. This is the highest unemployment rate since 2008. The concerning unemployment numbers reflects the impact of Covid-19, stricter lockdown measures, the July riots and overall depressed economic activity across all major economic sectors.

SEIFSA Economist Palesa Molise noted that on aggregate, the data shows that 660 000 jobs in total were lost on a quarter-on-quarter basis between the third quarter of 2021 and the second quarter of 2021. The broader manufacturing sector (including its heterogenous metals and engineering (M&E) sector), lost 0.9 percent of total employment, which equates to 13 000 jobs lost between the second and third quarter of 2021, whilst the number of employed people decreased from 1 415 000 to reach 1 402 000 during the same period.  Disconcertingly, on a year-on-year basis, the manufacturing sector lost an alarming 58 000 jobs, representing a decline of 4.0 percent.

“All industries experienced job losses between the second and third quarter of 2021, except for the Finance Industry which gained 138 000 jobs” Ms Molise said.

Ms Molise said that the surge in unemployment numbers, coupled with a very high Gini-coefficient of 63.0 index in South Africa, is worrisome as this indicates the extent to which inequality is deepening in the country. The issue of unemployment or rather the lack of employment opportunities continues to affect not only the economic status or progression of a country but more importantly the livelihoods of all its people.

Ms Molise added that “More effort should be placed in curbing the stubbornly high unemployment rate, reducing electricity costs, logistical costs and providing for critical skills opportunities in digitisation, automation, data science and artificial intelligence.”

“The latest unacceptable rise in unemployment figures, now more than ever before, requires Business, Labour and Government to urgently collaborate in finding sustainable solutions to the scourge of unemployment in our Country.” she concluded.


SEIFSA encouraged by continous improvement in selling price inflation

Johannesburg, 25 November 2021 - The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the continued improvement in the Produce Price Index (PPI) for intermediate manufactured goods, as reported by Statistics South Africa (Stats SA) today.

“PPI data has improved consecutively from January this year, alongside the PPI for final manufactured goods. This is good news for the broader manufacturing sector and specifically the Metals and Engineering (M&E) sector against the backdrop of the coronavirus pandemic, lootings, industrial action and increased volatility in imported prices as a result of a generally weak exchange rate”, says SEIFSA Economist Palesa Molise.

The Stats SA data shows that on a year-on-year basis, the PPI for intermediate manufactured goods increased to 20.4 percent in October 2021, from 19.5 percent in September 2021. The main contributors to the annual rate were: chemicals, rubber and plastic products, basic and fabricated metals, saw-milling and wood. PPI for final manufactured goods for the broader manufacturing sector also increased to 8.1 percent in October 2021, up from 7.8 percent in September 2021 on a year-on-year basis. 

“Given that the PPI for intermediate manufactured goods has maintained an upward trajectory since January 2021, an increasing trend in the PPI for intermediate manufactured goods bodes well for the broader manufacturing sector. This assist businesses to be more competitive considering that businesses have been struggling with increases in input costs. Rising fuel prices and energy costs remain a concern, especially given the current challenging economic environment, characterised by weak domestic demand and declining employment numbers. Better PPI for intermediate manufactured goods amounts to some good news for producers in the M&E sector, who now have some lee-way to recover the losses incurred as a result of volatile input costs which will add to the bolstering of margins”, said Molise.

During this immediate period of recovery from the recent industrial action in the steel and engineering sector, businesses will be seeking to leverage off the improvement in selling price inflation amidst the on-going uncertainties around a possible fourth wave, on-going and intermittent load-shedding and the possible reintroduction of harsher COVID-19 adjustment levels.


SEIFSA welcomes finance minister’s 2021 medium term budget policy statement

JOHANNESBURG, 12 NOVEMBER 2021 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes Finance Minister Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS), which outlined South Africa’s path to economic and social recovery.

The year 2020 has been difficult for South Africa’s ailing economy which was not spared from the devastating impact of the global coronavirus pandemic. However, as noted by the Minister of Finance in his speech, the first half of 2021 indicates a path to recovery which has been characterised by lower interest rates, support from strong international demand and higher commodity prices. This is in line with the significant green-shoots we have seen in the broader manufacturing sector and in the Metals and Engineering sector. The MTBP identified the need to manage our debt and for the faster implementation of structural reforms. These should create an environment for investment growth to ensure a fast-growing economy.

As one of the sectors which form the backbone of the South African economy, the Metals and Engineering sector remains a crucial supplier of inputs into major sectors such as construction, mining and other manufacturing sub-industries. It is thus an integral part of economic and industrial development in South Africa. Therefore, infrastructure opportunities through the Economic Reconstruction and Recovery Plan will assist the ailing sector in its recovery.

We applaud the Minister for noting the continued commitment to the Infrastructure Fund which should unlock more infrastructure projects for implementation. It places special emphasis on fiscal sustainability and on economic reforms which are focused on improving competitiveness, productivity, investment and employment. These are extremely crucial for the South African economy, and for the Metals and Engineering sector in particular.

Against the backdrop of the coronavirus, the persistent erratic electricity supply, increasing cost of living and local steel prices and the increase in fuel prices poses challenges to economic recovery. Therefore, more work needs to be done as it would take time before the economy can be turned around.


SEIFSA continued increase in manufacturing production & sales data is encouraging

JOHANNESBURG, 11 NOVEMBER 2021 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) is encouraged by manufacturing data released by Statistics South Africa’s (StatsSA) today which indicates an uptick of 1.3 percent  in total manufacturing production on a year-on-year basis in September 2021 compared to September 2020.

The improvement in manufacturing data is despite the current disruptions caused by Eskom load-shedding which has significantly affected production.

“According to the manufacturing data, total manufacturing sales increased by 9.0 percent year-on-year in September 2021, compared to September 2020. The Metals and Engineering (M&E) sector’s annual performance was generally in line with that of broader manufacturing production which increased with a year-on-year basis average of 4.6 percent in September 2021. Total sales increased by 17.0 percent to reach R82.9 billion in September 2021.

The increase in manufacturing output, and specifically in the M&E sector, is line with total manufacturing capacity utilisation data which improved to 78.0% in the third quarter of 2021 compared with 71.7% in the third quarter of 2020. Within the M&E sector, capacity utilisation improved significantly to 74.9% in the third quarter of 2021 compared to 66.1% in the third quarter of 2020,” says Ms Palesa Molise, SEIFSA Economist 

The expansion in output is encouraging as it filters down to companies in the M&E sub-sectors which are under duress. Moreover, given the multiplicity of challenges faced by businesses, the uptick of output data provides a glimmer of hope that momentum will continue to increase in the coming months. However, the re-introduction of Eskom load-shedding, high electricity and fuel costs and volatility in the exchange rate will place significant strain on production levels.

“The Metals & Engineering sector has recently come out of a three-week industrial action which cost the industry immensely. Therefore, an urgent response to the issue of Eskom load-shedding is required for the broader manufacturing sector and for the M&E sector companies to regain momentum and to boost production and sales levels by leveraging on the relaxed lockdown level restrictions.” says Ms Molise.


SEIFSA welcomes improvement in capacity utilisation in the manufacturing sector

JOHANNESBURG, 4 NOVEMBER 2021 – Despite the country's continued lockdown, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes gains in capacity utilization in the manufacturing sector.

Data released by Statistics South Africa today shows total capacity utilisation was 78.0% in the third quarter of 2021 compared with 71.7% in third quarter of 2020, this represents an increase of 6.3%. Within the Metals and Engineering (M&E) sector, capacity utilisation improved to 74.9% in the third quarter of 2021, from 66.1% in third quarter of 2020. Nine of the ten manufacturing divisions showed increases in utilisation of production capacity in August 2021 compared with August 2020. “This is positive news as it demonstrates that if lockdown regulations are relaxed along with increased vaccine roll-out, production levels can increase further under improved demand conditions,” according to SEIFSA Economist Palesa Molise.

The manufacturing sector has also shown signs of improvement in terms of production patterns with year-to-date production improvement of 11.6 % to the month of August 2021. Despite the recent lootings and on-going interruptions in electricity supply South Africa's economy recorded its fourth consecutive quarter of growth, rising by 1.2% in the second quarter of 2021 with the Absa Manufacturing PMI moving into an expansionary trajectory of above 50. “Although there are improvements in total capacity utilisation, we are still operating at a level lower than 80% benchmark” warned Molise.  

The M&E sector is heavily reliant on demand from key Government infrastructure projects to boost its production and sales, especially for products such as steel and other related downstream products such as roofing material. Hence increased level of industrial domestic demand is required for manufacturers to reboot capacity utilization levels to above 80%,” Molise says.

It is therefore imperative that the roll-out of Covid-19 pandemic vaccines is accelerated and all direct and indirect disruptions to production cycles are kept to an absolute minimum if we are to see confidence returning to our industrial production base. 


SEIFSA welcomes continuous improvement in selling prices for manufactured goods.

28 October 2021 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the consistent increase in the Producer Price Index (PPI) for intermediate manufactured goods published by Statistics South Africa (Stats SA) today. The improvement in the data, which is used as a proxy for selling price inflation, is good for the Metals and Engineering (M&E) Sector, as it reflects an uptick in the PPI for intermediate manufactured goods since it boosts supply-side dynamics in the Metals and Engineering (M&E) cluster.

The latest data published by Stat SA indicates that the annual percentage change in the PPI for intermediate manufactured goods, which is a measure of factory gate prices, increased from 17.7 percent in August 2021 to 19.5 percent in September 2021. The annual PPI for final manufactured goods also increased from 7.2 percent in August 2021 to 7.8 percent in September 2021. Latest PPI data builds on last month’s data and provides distressed businesses with a glimmer of hope to manoeuvre around cost-push inflation.

An increasing trend in the PPI for intermediate manufactured goods bodes well for the broader manufacturing sector and the M&E sector, this is good news for producers in the M&E sector, who finally have some lee-way to recover the losses incurred as a result of volatile input costs.

Disconcertingly, factors such as the on-going and persistent load shedding by ESKOM continuous, amongst other factors, to be a serious challenge to energy-intensive metals and engineering industries. Coupled with the uncertainty surrounding the prospects of a fourth wave presents serious challenges to policy makers, as the economy battles to stave off further slowdowns in growth, employment and investment.

In order for the sector to remain attractive to investments it is crucial to maintain a positive differential between input cost inflation and selling price inflation, as business conditions on the whole have generally been tough. A positive differential enables manufacturers to pass cost increases onto the market, also enabling businesses to improve their margins.


SEIFSA welcomes end of metal and engineering industries strike and lauds the signing of a landmark agreement.

JOHANNESBURG, 21 October 2021 – The Steel and Engineering Industries Federation of Southern Africa (SEIFSA) welcomes the end of the strike that has affected the metal and engineering sector in the past three weeks, SEIFSA Chief Executive Officer Lucio Trentini said.

SEIFSA on behalf of its affiliated Associations and labour reached a landmark agreement on the issue of awarding increases on a rand and cents amount calculated on scheduled rates, which was the major point of difference in the past few weeks.

“We are immensely pleased that the strike is finally over. It is now incumbent on all stakeholders in the metals and engineering sector to work collectively to rebuild and grow the sector. The sector has a very important role to play in the delivery of the Government’s ambitious economic recovery programme over the next few years, and that can happen only when a strong partnership exists between business and labour,” Mr Trentini said.

The 1 July 2021 to 30 June 2024 Settlement Agreement amends existing terms and conditions of employment of all employees covered by the Main Agreement and is in full and final settlement of wages and conditions of employment for the period of the agreement. Wages during the three year period will be adjusted on average by 5,49% with a general labourer receiving 6% and artisans 5% calculated on rand and cents on the scheduled rates.  

We at SEIFSA thank each and every employer representative nominated by their respective Associations who gave unstintingly of their time to assist and play a crucially important role in the process.

We are immensely grateful to the SEIFSA Board, the SEIFSA Council, the Associations and each and every member appointed on the SEIFSA Negotiating Team.  The three-year (2021 to 2024) Settlement Agreement is the fruit of their decisive and collective leadership.