Wage Negotations Update Issue 4

CCMA issues picketing rules.

Picketing Rules have been issued by the CCMA binding the Parties behaviour during the industrial action that will unfold over the next couple of days.

If you have not yet received the download it here: 


Company Lockout Letter

The NUMSA strike will commence at 0:500 on Tuesday, 5 October 2021.Concerning the strike please communicate the following to your employees:

  • Management recognises the right of workers to strike;
  • Management recognises the right of those workers who do not wish to participate in strike action NOT to strike;
  • Acts of intimidation, victimisation and/or forcing employees who do not wish to participate in strike action to do so against their will - witnessed and/or reported to management, will not be condoned or tolerated and the appropriate and necessary disciplinary action will be taken;
  • All acts of damage to company property, witnessed, recorded and/or reported to management will likewise lead to disciplinary action on the grounds of serious misconduct; and
  • All absences from work and/or work stations as a consequence of participating in strike action will be treated on the basis of NO WORK; NO PAY

Please also note that we will be circulating a Strike Survey on every-day of the strike in order to track support for the strike and managements responses thereto.

The Survey will be brief and shouldn’t take you longer than 5 minutes to complete. Please complete the survey, it is critically important that we have a clear and proper understanding of what will unfold over the next few days 

With regards to implementing a lock-out in response to strike action, again this is your call and your call only, should you wish to do so.

In the interim, SEIFSA’s Negotiating Team will continue to keep all channels of communication open with all trade unions in an endeavour to mitigate the impact the strike and the lock-out will have on the industry.

Again, we kindly remind the membership to ensure that all necessary precautions and plans are in place in anticipation of what will commence on Tuesday.

Should you have any queries, questions and/ or concerns before, during or post this episode please contact the Staff of the Industrial Relations Division on (011) 298-9400 or myself directly on (011) 298-9414.

As we gear up for what will unfold, I take this opportunity to thank each and every member of the Negotiating Team, the Associations and most importantly you our affiliated membership. I can assure each and every one of you that we remain committed and resolute to closing this round of negotiations, within mandate and with as little disruption as possible to the industry.

We will continue to keep all members fully informed as developments unfold over the next few days.

Stay safe and remain vigilant.

Download Strike picketing rules:


CCMA Picketing Rules


SEIFSA serves notice of lock-out.

In response to NUMSA’s declaration of strike action, which schedules strike action to commence on Tuesday, 5 October, SEIFSA today served a notice of a defensive Lock-out.

A draft copy of the Lock-Out Notice is attached together with Annexure A hereto, for your use, should you wish to declare a lock-out.

By virtue of this notice, SEIFSA, on behalf of its Associations, has reserved the rights of the membership to implement a lock-out in response to strike action, should a company wish to do so.

In the interim, SEIFSA’s Negotiating Team is continuing to explore all settlement possibilities with organised labour in an endeavour to limit the impact that the strike and lock-out will have on the industry.

Again, we kindly remind the membership to ensure that all necessary precautions and plans are in place as we continue to work towards a settlement. We will continue to keep all members fully informed as developments unfold


NUMSA serves notice of strike action.

As expected at approximately 16:15 yesterday NUMSA officially served notice of strike action against the SEIFSA affiliated Associations, NEASA, SAEFA and the CEO.

A copy of the formal notice is attached which confirms that the strike will commence at 05:00 on Tuesday, 5 October, with a march to Metal Industries House in the CBD, with marches also expected in the Cape and KZN.

SEIFSA on behalf of the Associations will soon be responding with a formal notice of lock-out in response to the strike, thereby reserving the right of the membership to implement a lock-out, should a company wish to do so.

In the interim, SEIFSA, through the duly appointed Negotiating Team is continuing to explore all possible settlement possibilities with organised labour in an endeavour to limit the damage industrial action will inflict on the sector.

However, in light of the fact that the action on Tuesday next week will proceed, we once again urge all members to take all necessary precautions and plan for the worst case scenario which we will be doing our utmost to mitigate.

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


Picketing rules dealt with - formal notice of strike.

Members will be aware that NUMSA is in dispute with the SEIFSA affiliated Associations, NEASA, SAEFA and the CEO. Having received the certificate of non-resolution, the only procedural step preventing NUMSA from being able to issue the 48 hours’ notice of strike action is sign-off on a set of agreed picketing rules.

At this morning’s MEIBC/ CCMA facilitated meeting held between all of the parties, the employer organisations were not agreeable to signing-off on a draft set of rules tabled by NUMSA. The employer organisations unanimously agreed that in response to the draft rules tabled by NUMSA, the CCMA Commissioner, guided by the applicable provisions of the Labour Relations Act (attached), the Disaster Management Act and Regulations or Directions governing the management and spread of the COVID-19 pandemic, should instead determine the rules for the parties.

The CCMA facilitator agreed and has undertaken to do so by no later than Sunday, 3 October. The moment we receive the default picketing rules we will immediately circulate them to the membership. In the interim please familiarise yourselves with the attached extract from the Labour Relations Act.

Having dispensed with this procedural step we now expect NUMSA to serve notice of its intention to engage in a protected strike commencing with a march to Metal Industries House on Tuesday, 5 October. Once we receive this notice we will formally respond with a notice of lock-out in response to the strike, thereby reserving the right of the membership to implement a lock-out, should a company wish to do so. We will circulate the strike notice and the lock-out notice the moment we receive formal notification from NUMSA.

In the interim, SEIFSA, through the duly appointed Negotiating Team is continuing to test and explore all possible settlement possibilities with organised labour in an endeavour to limit the damage industrial action will inflict on the sector. Unfortunately, it is now clear that the action on Tuesday next week will proceed.

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


Wage Negotations Update Issue 4

NUMSA call for certificate of non-resolution and inches the industry closer to potential strike action.

At today’s CCMA facilitated MEIBC Dispute Sub-Committee Meeting (held between NUMSA, Solidarity, UASA, MEWUSA, SAEWA, and the SEIFSA Employer Associations, NEASA and SAEFA) NUMSA exercised its right to call for the issuing of a certificate of non-resolution.

Members will be aware that negotiations are taking place under the auspices of the MEIBC’s Constitution, which prescribes that once a dispute has been declared and a process has been agreed on how best to deal with the dispute - on the expiry of a thirty-day window - any party to the dispute may call for the issuing of a certificate of non-resolution.

With NUMSA having declared it’s dispute against all the employer organisations on the 29 July, and SEIFSA obo the Associations having countered with it’s dispute against NUMSA on 2 August, NUMSA is within it’s right to call for the certificate.   

It is important to note that the certificate of non-resolution does not automatically trigger the issuing of the 48 hours’ notice of intended strike action. NUMSA will still need to formulate their strike notice and formally serve it on SEIFSA, NEASA, CEO and SAEFA.

Over and above the requirement to formally serve the strike notice on the employer organisations, Strike and Picketing Rules will need to be agreed between the parties,  failing which the CCMA Facilitator will impose such rules on the parties. 

Having called for the certificate, NUMSA, supported by all the trade unions indicated their availability to meet with all employers in a final push to find common ground. The SEIFSA appointed Negotiating Team will immediately be taking NUMSA up on this offer and will ensure that no other party is left behind. Unfortunately, we cannot guarantee what NEASA, CEO and SAEFA may or may not do.

In closing we will continue in our endeavour to do whatever is reasonably possible to avoid the prospect of industry industrial action, which regrettably will be in no-one’s best interests.

In the light of this latest development, members are once again urged to plan for the worst case scenario and ensure that adequate stock, material, enhanced security etc. are in place. We will immediately advise the membership should continued negotiations break down further and/ or a formal strike notice has been issued and received.

Insofar as our dispute against NUMSA is concerned, I can confirm that all the necessary constitutional requirements in respect of each Association’s Constitution, with reference to conducting a secret ballot, have been met. The ballot was overseen and scrutinized by an independent organisation. The support to implement a lock-out against a strike, should it become necessary to do so, was unanimous.

If it becomes inevitable that strike action will materialise and employers may wish to implement a lock-out, we will immediately on receipt of the formal 48 hours’ notice of intended strike action, circulate the requisite company lock-out letter.

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


Wage Negotations Update Issue 4

Dispute discussions continue between employers and trade unions in an effort to conclude an agreement.

At today’s CCMA facilitated bargaining council dispute sub-committee meeting held between the trade unions, the SEIFSA affiliated Employer Associations, NEASA, SAEFA and CEO, all the parties agreed to continue negotiations on Thursday, 2 September 2021.

This is an important development as it signals a serious intent on the part of all the parties to explore all possibilities in attempting to break the deadlock, before resorting to calling for the issuing on of a certificate on non-resolution which opens the way for the issuing of strike and lock-out notification.

Today’s session assisted all the parties in gaining a better understanding of each other’s position and with the follow-up meeting scheduled for the 2 September all parties will have a final opportunity to take stock of their respective positions.     

The SEIFSA affiliated Associations settlement offer is based on four inter-related pillars namely:

  1. Duration;
  2. Wage increases and a wage model;
  3. Extension; and
  4. 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.       

This 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, with a floor and ceiling of 3% and 6% in years 2 and 3 guaranteeing workers not less than a 3% or 6% increment plus the cost of living adjustment of 0.5% and 1% in years 2 and 3 respectively.  

The proposed agreement this year sees workers receiving the following guaranteed Rand/cents personal increase to their actual hourly rate per hour:

 
Rate Current Minimum Wage Rate 2020 Guaranteed Personal Increase New Entry Level Wage  Rates 2021
  R c R c R c
A 84,75 3,73 88,48
AA(6) 80,83 3,56 84,39
AA(start) 77,18 3,40 80,58
AB 73,73 3,24 76,97
B 70,53 3,10 73,63
C 67,96 2,99 70,95
D 66,58 2,93 69,51
DD 61,76 2,72 64,48
DDD 59,10 2,60 61,70
E 56,47 2,48 58,95
F 54,10 2,38 56,48
G 51,65 2,27 53,92
H 49,55 2,18 51,73

As part of the agreement a special phase-in dispensation will be on offer to employers who are currently paying below the current scheduled 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 scheduled rates on the 1 July 2021 will have ten (10) years to phase-in to 100% of the scheduled rates and employers who are paying below 60% of the current scheduled rates on 1 July 2021 will have 5 (five) years to phase-in to 60% of the scheduled rates and thereafter ten (10) years to phase-in to 100% of the scheduled rates.

Negotiations will continue in earnest between all the parties and every reasonable effort will be made to avoid a complete breakdown in negotiations which will open the way for industry strike and lock-out action.

Notwithstanding our commitment to working around the clock to avoid industrial action, members are nevertheless urged to begin putting in place measures, including but not limited to making provisions for stock, material, enhanced security etc. in order to be properly prepared should the prospect of strike and lock-out action become a reality.

We will immediately advise the membership the moment we anticipate that industrial action is imminent.    

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

Lucio Trentini, SEIFSA CEO


Wage Negotations Update Issue 4

Worker's Brief 1: SEIFSA offer to the trade unions

Print out and place it on your notice board, in the change rooms, canteen etc.

SEIFSA OFFER TO THE TRADE UNIONS

The SEIFSA offer to the trade unions in this year’s Main Agreement Negotiations amounts to the following:

Duration

A three year deal

Wage Increases

A guaranteed 4, 4% increase for all workers calculated on the scheduled rates and given to what a worker is actually earning per hour.

A guaranteed CPI + 0,5% increase in year 2 i.e. 1 July 2022

A guaranteed CPI + 1% increase in year 3 i.e. 1 July 2023

The 4,4% increase this this year translates to the following impact on a worker’s pay packet:

By way of a practical example:

A worker at Rate H currently earning R 49,55 will receive a 4,4% increase per hour or a R 2,18c increase adjusting his/her rate to R 51,73 per hour.

This amounts to a new weekly rate of R 2 069.20 Or R 8 959.63 per month.

This amount excludes your guaranteed 15 or 20 days paid leave, leave bonus, 30 days paid sick leave, family responsibility leave, paid public holidays, contributions towards provident and pension fund, contributions to the sick pay fund, COIDA, UIF, SDL, MEIBC levies, PPE and various COVID compliance obligations.

The above all amounts to an additional cost to employment for the employer of approx. 40% - meaning that a Rate H worker or general labourer covered by the Main Agreement total cost to employment to the employer amounts to R 12 543.63 per month

Final note from Lucio

All workers covered by the Main Agreement are guaranteed a personal rands and cents increase as stipulated above irrespective of what they are actually earning per hour.

The new entry level wage rates column as set out above sets out the minimum entry level wage rates for new entrants into a company, with existing workers receiving the guaranteed personal increases as a rands/ cents adjustment to their actual rate per hour.

Negotiations with all the trade unions, facilitated by the CCMA, in an effort to break the deadlock continue tomorrow,
Tuesday 24 August 2021.

We will continue to keep you fully informed as developments unfold.


NUMSA commences with nationwide demonstrations

Members will be aware that NUMSA has commenced with nationwide demonstrations across the industry.

SEIFSA has formally and in writing advised NUMSA that we view this action as amounting to peaceful demonstrations and not pickets or picketing.

In terms of the Labour Relations Act picketing may only be embarked in support of a protected strike or in opposition to a lock-out. To date neither party or parties have served strike and/ or lock out notice on the other and negotiations aimed at breaking the deadlock are ongoing with the next round of negotiations aimed at breaking the deadlock scheduled on Tuesday, 24 August 2021.

Freedom of Expression and Peaceful Protest
Section 17 of the Constitution recognizes the right to assemble and demonstrate.

Importantly, this constitutional right can only be exercised peacefully and unarmed.

Should members receive a request from their local trade union official, shop steward/s and/or union members to conduct, participate-in and/or arrange a peaceful demonstration, in workers own time and on company premises, this may only be done with the explicit permission of management.

In the event that such permission is granted, the demonstration must take place at a designated area and in full compliance with all COVOD-19 lock-down restrictions and regulations and importantly all health and safety protocols i.e. masking, social distancing, group size etc.

Employees participating in a peaceful demonstration off company premises and who are seen not complying with all COVID-19 protocols run the risk of not been allowed back on company premises until they have self-quarantined in-line with government directives aimed to managing and limiting the spread of the pandemic.

Management Guidelines

Should any demonstration, either on or off company premises, spill over into normal working time, management reserves the right:

  • to immediately implement the rule of no-work; no-pay;
  • any action spilling over into normal production time where no prior management approval has been granted will result in management reserving its right to implement  appropriate disciplinary action;
  • any action resulting in any disruption to work and/ or infringing on the rights of other employees who have no interest in the action will also result in disciplinary action; and  
  • Any overtime worked during the course of the week will be paid at ordinary rates to make up for the lost ordinary working hours as a result of the unauthorized action.

SEIFSA remains fully and completely committed to continuing negotiations with a view to securing an agreement within its mandate. 

We will also immediately advise the membership the moment we anticipate that industrial action is imminent.    

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

SEIFSA’s Industrial Relations and Legal Services Division on (011) 298-9400 are available to provide further advice or assistance to management in this regard.

L Trentini, CEO SEIFSA


Wage Negotations Update Issue 4

Notice by NUMSA to commence with nationwide pickets

Introduction

NUMSA has served notice of its intention to commence with pickets in the Metals and Engineering Sector.

SEIFSA on behalf of the membership has advised NUMSA that it views this notice as being premature, ill-informed and procedurally defective in that picketing may only be embarked in support of a protected strike or in opposition to a lock-out.

To date neither party or parties have served strike and/ or lock out action on the other and negotiations aimed at breaking the deadlock are ongoing.

 Freedom of Expression and Peaceful Protest
 Section 17 of the Constitution recognizes the right to assemble and demonstrate.

Importantly, this constitutional right can only be exercised peacefully and unarmed.

Should members receive a request from their local trade union official, shop steward/s and/or union members to conduct, participate-in and/or arrange a peaceful demonstration, in workers own time and on company premises, this may only be done with the explicit permission of management.

In the event that such permission is granted, the demonstration must take place at a designated area and in full compliance with all Covid-19 lock-down restrictions and regulations and importantly all health and safety protocols i.e. masking, social distancing, group size etc.

Management Guidelines

Should any demonstration spills over into normal working time, management reserves the right:

  • to immediately implement the rule of no-work; no-pay;
  • any action spilling over into normal production time where no prior management approval has been granted will result in management reserving its right to implement  appropriate disciplinary action;
  • any action resulting in any disruption to work and/ or infringing on the rights of other employees who have no interest in the action will also result in disciplinary action; and  
  • Any overtime worked during the course of the week will be paid at ordinary rates to make up for the lost ordinary working hours as a result of the unauthorised action.

SEIFSA’s Industrial Relations and Legal Services Division are available to provide further advice or assistance to management in this regard.

SEIFSA remains fully and completely committed to continuing negotiations with a view to securing an agreement within its mandate. 

We will also immediately advise the membership the moment we anticipate that industrial action is imminent.    

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

L Trentini, CEO SEIFSA


Production and sales data in the manufacturing sector is encouraging, says SEIFSA

JOHANNESBURG, 10 AUGUST 2021 – The improvement in Metals and Engineering (M&E) production and sales is encouraging as it indicates the economy is slowly gaining momentum despite the COVID-19 pandemic, the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) said today.

According to manufacturing data released by Statistics South Africa (StatsSA), total manufacturing production improved to 12.5% year on year in June 2021 compared with June 2020, despite a month-on-month decline of -0.7% from May 2021. Total manufacturing sales increased by 29.3% year on year in June 2021, while declining marginally by 0.3% from May 2021. Year to date, manufacturing production increased by 16.3%, with sales improving by 28.9%.

Within the M&E sub-sectors of the manufacturing sector, which accounts for a 29% share in manufacturing production, total production across the 13 sub-categories increased by an average of 27.6% in June 2021 year on year, with total sales increasing by a high 38.6%, to reach R81-billion in June 2021, with the largest sales value being in the non-ferrous metal products category at R19.1-billion.

As one of the backbone sectors of the South African economy, the M&E sector remains a crucial supplier of inputs into major sectors such as construction, automotive, mining and other manufacturing sub-industries, and is thus an integral part of economic and industrial development in South Africa. SEIFSA Chief Economist, Mr Chifipa Mhango said it was therefore crucial that the government supports a turnaround in the sector by prioritising the implementation of policy interventions identified in the Steel and Metals Fabrication Master plan 1.0.

Mr Mhango said that the current capacity utilisation level of below 80% within the sector nevertheless remains a concern. With the government easing lockdown restrictions and accelerating the COVID-19 vaccination drive, the M&E industry needs to focus on ramping up production to meet increased demand as the economy normalises, he said.

Mr Mhango said, however, that last month’s unrest will negatively impact production patterns. “While the current production data is positive, we expect growth patterns in July to be slightly lower due to the disruptions caused by the unrest and looting in parts of KwaZulu-Natal and Gauteng as depicted in the lower PMI data of 43.5,” he said.

The current picture of manufacturing production in South Africa is also in line with the positive trend globally. Manufacturing production in major economies such as China, USA, and the eurozone are growing at current rates of 8.8%, 16.1% and 39.4%, respectively. This is encouraging news for the global economy.

Ends