PRESS RELEASE - 2014/07/04: METALS AND ENGINEERING STALEMATE CONTINUES DESPITE EMPLOYERS’ 25% SALARY MOVE

The meeting took place hours after the SEIFSA Council – made up of Chairpersons of employer Associations affiliated to the Federation – had approved a 10% wage increase for H-level employees in 2014, followed by nine and eight percent increases in 2015 and 2016 respectively, as well as an eight percent increase for A-level employees in 2014 and seven percent increases in 2015 and 2016 respectively.
The 10% adjustment for low-level employees at Rate H represented a whopping 25% move for SEIFSA from its previous offer of eight percent, while the move from the previous seven percent to eight percent for higher-level artisans represents a 14% adjustment.

SEIFSA Chief Executive Officer Kaizer Nyatsumba said that the Federation had approached last night’s meeting full of optimism that the new offer would lead to the conclusion of a deal which would see employees returning to work next week. He said the failure to reach an agreement was deeply disappointing.

He said that the new offer was the very best that SEIFSA could make under these difficult economic circumstances, and it was sweetened by the fact that the Federation’s members had agreed to take their demand for a 50% reduction of entry-level wages off the table.

“We are very deeply disappointed by this turn of events. After a long and heated discussion, the SEIFSA Council had finally come up with a very good offer that we were very confident would be acceptable to NUMSA. Regrettably, however, it would appear that we continue to be miles apart with the union as a result, among other things, of patently political demands about which we can do nothing,” Mr Nyatsumba said.
He said that there was no way that employers in the metals and engineering sector, which was known for its peaks and lows, would accede to NUMSA’s demand to desist from ever using the services of labour brokers.

“NUMSA has taken its opposition to labour brokers and the youth wage subsidy up with the Government and failed to get an outcome to its liking, now the union wants to impose its wishes on employers,” Mr Nyatsumba said.

Mr Nyatsumba said that it had become increasingly clear that NUMSA had approached the negotiations with a political agenda, which it wanted to wage through the guise of negotiations on wages and conditions of employment.

“Regrettably, business is not a player on the political stage. It is evident to us that NUMSA is advancing a political agenda against the ruling party on matters like labour brokers and the youth wage subsidy, and that it has now chosen to bludgeon business into submission on those issues because it could not get its way with the Government,” Mr Nyatsumba said.

He expressed concern that the failure to reach an agreement meant that the strike, which was already characterized by high levels of violence, would continue indefinitely, in the process causing even more damage to the economy.

Mr Nyatsumba revealed that many employers represented by the Federation had reported serious incidents of violence, with some striking workers having broken down factory gates and assaulted people. He reiterated his call on the police to maintain peace and to apprehend those behind the violence.

Mr Nyatsumba said that while SEIFSA would continue to hold one-on-one discussions with the other unions that were active within the metals and engineering sector, it did not have any future meetings planned with NUMSA.


PRESS RELEASE - 2014/07/01: SEIFSA REMAINS DETERMINED TO WORK TOWARDS A RESOLUTION OF WAGE IMPASSE

Speaking after receiving a memorandum at Metal Industries House from the National Union of Metalworkers of South Africa, Mr Nyatsumba said the industry was deeply concerned about the damage caused by the strike to the economy. He said that each day on which employees were away from work cost the industry more than R300 million, which the ailing South African economy cannot afford. That is equivalent to 0,014% of the country’s daily Gross Domestic Product.

Mr Nyatsumba said that this was very concerning given the fact that South Africa’s economy had shrunk by 0,6% in the first three months of 2014 and that international ratings agencies have recently downgraded South Africa’s credit rating to just above junk status.

“Ours is a very strategic sector with both upstream and downstream impacts on other important industries like mining, construction and auto manufacturing. Therefore, it is not just companies in the sector that are affected or stand to be affected, but it is also those companies in these other industries,” he said.

Mr Nyatsumba revealed that he had received a call from the CEO of a major car manufacturing company based in South Africa, who expressed concern about the impact of the strike on his company. He said that the CEO had informed him that he was under “considerable pressure” from his head office in America to close operations down in South Africa and to move them to a country with a more stable labour dispensation.

“For the sake of our economy, which has been seriously under-performing and has already taken a considerable hammering as a result of the strike in the platinum sector that ended last week, we hope that it will be possible for us, employers and labour, to find one another over the next few days. This will call for a greater degree of realism on the part of labour in terms of its lofty demands and expectations,” Mr Nyatsumba said.

He said that the industry welcomed the Government’s interest in the current stand-off between business and labour and hoped that it would help to propel the protagonists closer to one another.
The Minister of Labour, Mrs Mildred Oliphant, had a meeting with the leadership of both SEIFSA and NUMSA yesterday evening, with a follow-up meeting tentatively scheduled for Friday. Mr Nyatsumba stressed that the SEIFSA leadership would continue to make itself available for discussions with any stakeholders in an effort to settle the dispute as soon as possible.


Legal Services Retainer Package

SEIFSA Legal now offers a retainer package that ensures our clients are well armed to minimise risk and conflict that can lead to litigation, or worse. Our objective is to become an integral part of our clients’ teams, which is essential to your strategic success.

How does a retainer package benefit my company/organisation?

  • It is a pro-active approach, therefore exposure to unnecessary legal fees is avoided
  • It allows the company to more accurately budget for legal expenses
  • It helps lessen the amount of legal fees by paying on a monthly basis instead of paying for legal assistance on an hourly basis
  • The peace of mind of knowing we are only a phone call away

The retainer includes 12 hours per month for 12 months or 5 hours per month for 6 months. Services include:

    • Chairing disciplinary hearings
    • Unlimited legal advice
    • Preparation for arbitrations
    • Drafting of contracts
    • Interlocutory applications before the CCMA and MEIBC
    • Discounted rates for Legal representation

Standard Retainer:

  • The standard retainer agreement is available to clients at a fee of R8 000.00 per month for 6 months
  • and R6 500.00 per month for a 12 month agreement.

Special offer:
If you sign up for the 12 months retainer package before the 31 January 2016, your organisation will enjoy all the services of the standard retainer PLUS the following:

    • 1x Labour court litigation (action or application proceedings)
    • Unlimited representation at the MEIBC (For the duration of your retainer)
    • 50% discount on all unsettled disputes

If you sign up for the 6 months retainer package before the above stipulated date, you pay R1 000.00 less per month i.e. ONLY R7000.00 per month.

For more information, please contact:

Bridgette Mokoetle
Legal Executive & Company Secretary
Direct: 011 298 9413
E-mail: bridgette@seifsa.co.za