Press Release - 2014/07/14/SEIFSA BOARD RE-AFFIRMS FULL CONFIDENCE IN CHIEF EXECUTIVE OFFICER
Speaking after an urgent Board meeting in Johannesburg this afternoon following a personal attack on Mr Nyatsumba by the leadership of the National Union of Metalworkers of South Africa (NUMSA), Mr Khumalo said that Mr Nyatsumba has done a great job of representing the Federation on all matters, including on the deadlocked wage negotiations that began four months ago.
Mr Khumalo, who chairs the SEIFSA Board, said that the Board was surprised by the attack launched on the Federation's CEO because everything that Mr Nyatsumba has done in leading the SEIFSA negotiating team and articulating the organization's views was consistent with his mandate from the Board and the Council.
"We find it regrettable that, at a time when we should all be working together to reach an agreement and to end the strike currently affecting our industry, we have to spend time responding to personal attacks on our CEO. We are happy that, since assuming office in November last year, Mr Nyatsumba has raised SEIFSA's public profile considerably and ensured that the Federation's voice is heard on many matters.
"As a Board, we expect that the engagement between all parties must be responsible and matured," Mr Khumalo said.
Press Release - 2014/07/11:SEIFSA CONDEMNS NEASA’S PROPAGANDA OF DESPERATION, AWAITS OFFICIAL RESPONSE FROM NUMSA
SEIFSA Chief Executive Officer Kaizer Nyatsumba dismissed “with the contempt that it deserves” NEASA Chief Executive Officer Gerhard Papenfus’s wild allegation, in a press statement today, that the Federation had betrayed the interests of small business.
“For quite some time now, Papenfus has been making all sorts of allegations against a number of stakeholders, among them us. He appears to be absolutely desperate to attract attention to himself and his organisation, including through making wild and unsubstantiated claims against others,” Mr Nyatsumba said.
He said that over the past few weeks NEASA had alleged repeatedly that the wage offers made by SEIFSA to unions within the Metal and Engineering Industries Bargaining Council (MEIBC), in an effort to avoid a protracted strike, represented the interests of big business.
“Nothing could be further from the truth. Although some of the largest companies in our sector are also members of Associations affiliated to SEIFSA, by far the majority of our members are small companies employing fewer than 50 people. That constituency makes 63 percent of the companies within the SEIFSA fold and informs everything that SEIFSA does,” Mr Nyatsumba said.
Mr Nyatsumba said that SEIFSA – which was among the founders of the MEIBC 70 years ago – was deeply committed to the collective bargaining process, hence its insistence that it would not sign any resulting agreement unless it was satisfied that matters discussed during the negotiations would not be taken up with member companies at company level in an attempt to double dip. Mr Nyatsumba said SEIFSA stood firm by its demand that an agreement needed to be reached on Section 37 of the Main Agreement.
“What South Africa needs are mature employers’ organisations and unions that put the country’s interests first, and not ones given to puerile tantrums and that seek to behave as if we were still in our despicable, bygone era. Just as making political demands and embarking on strike at the drop of a hat is unacceptable, so, too, is a bull-in-a-china-shop approach that opposes everything for the sake of opposing,” Mr Nyatsumba said.
He said that SEIFSA was very concerned about the damage caused to the economy by the current strike, and the organisation had done everything possible to avoid a strike. Once the strike had started, SEIFSA had again worked very hard to get it ended as soon as possible.
“We are very disappointed that, despite having made our very best offer on Tuesday in a last-ditch effort to end the strike, NUMSA has not yet got back to us with a response. We made it plain to the union that Tuesday’s was the very last offer to be made by SEIFSA, and that it would be removed from the table if it were not accepted,” he said.
Mr Nyatsumba said that, out of concern about the strike’s effect on the economy, the majority of the Federation’s members had approved a final offer of 10% in 2014, 9,5% in 2015 and 9% in 2016 respectively for Rate H workers and an offer of 8% in 2014, 7,5% in 2015 and 7% respectively for Rate A. He said that SEIFSA members had done so in the hope that workers on strike would be back at work next week.
Mr Nyatsumba said that although he had seen reports in the media quoting anonymous sources as saying that NUMSA had rejected SEIFSA’s final offer, he had not received any official response from the metalworkers union.
Press Release - 2014/07/10: STRIKE LIKELY TO WORSEN PERFOMANCE OF THE AILING METALS AND ENGINEERING SECTOR
Data for May show a complete collapse of -7% in production, and is mainly to blame for the 12-month growth performance dropping to 2%, down from 3,5% at the end of April.
SEIFSA Chief Economist Henk Langenhoven warned that “the worst is yet to come”.
He said that the latest piece of bad news comes on the heels of the June Kagiso Puchasing Managers’ Index business activity index released earlier, which indicated a further strong deterioration in business confidence since the beginning of the year. That, he said, was a trend which started in the third quarter of 2013.
Mr Langenhoven said that while production levels had held up until April, mainly due to pre-emptive stock building in anticipation of the current metals and engineering strike and a possible earlier resolution of the platinum mining strike, these drivers had since waned.
“The sector strike has materialised, the mining recovery will be slow due to the strike’s duration and construction shows no signs of revival,” said Mr Langenhoven.
He said that the collapse in production was severe, with May levels 4% lower than April, and May 2014 nearly 7% lower than the same month last year.
Mr Langenhoven said that:
- only basic iron and steel, other fabricated metal products and household appliances showed growth between January and May, with all other sub- industries contracting when compared to the same period last year;
- on a twelve-month basis the overall production recorded 2% growth mainly due to the heavily-weighted basic iron and steel, together with non-ferrous, other fabricated metals and household appliances.
Mr Langenhoven said that there was “a real danger” that the metals and engineering strike now in its second week could “break the camel’s back”. The strike comes on top of negative sector profit margins over the last three years, with low capacity utilisation, as well as an increased influx of imported goods replacing South African products.
“South Africa cannot afford the current vicious declining spiral impacting the auto, mining and construction sectors and the overall economy,” Mr Langenhoven said.
2014 STRIKE ACTION INCIDENTS VIDEOS
| Video Footage at Steelmor Industries in Benoni on 03 July 2014 | ||
| Strikers intimidating SAPS at the premises of Dormac in Durban | ||
| Engineering firm in Daleside Randvaal |
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| NUMSA Strike Footage -Viking Foundry | ||
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 - 2014/07/04: 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.