SEIFSA Seeking To Extend The Main Agreement To 30 June 2021
According to various health experts and sundry commentators, the current Covid-19 pandemic presents an unprecedented challenge, unmatched since the Spanish Flu and the Great Depression. It has depressed global economies and a material shrinkage in global and domestic trade is expected. Covid-19 has landed on our shores at a time when our economy was already under tremendous strain.
Following more than 13 weeks of lockdown, business finds itself in survival mode and the consequences for the metals and engineering sector are going to be severe for employers and employees alike. Nobody knows for certain what industry will look like in a post-lockdown, Covid-19 reality.
Given the remaining restrictions on movements and gatherings and the fact that the Main Agreement negotiating timetable has been irreversibly affected, the Employer Association federated to SEIFSA are firmly of the view that the Main Agreement in its current form is worth preserving and that negotiations should be postponed to 2021.
A negotiating team representing Employer Associations affiliated to SEIFSA has been involved in talks with all the trade unions, on the postponement of the 2020 negotiations, since alert level 3 of the lockdown. Whilst efforts continue to finalise the details surrounding the proposed extension of the current Main Agreement to 2021, we urge all member companies to continue to observe the current terms and conditions of the Main Agreement, in good faith and in accordance with sound industrial relations practice, during the hiatus period after 30 June 2020.
Discussions on the postponement of negotiations and extension of the current Main Agreement to 30 June 2021 are still ongoing. We will keep you informed on all developments as soon as we are able to do so.
Kaizer M. Nyatsumba
Chief Executive Officer
2020 MAIN AGREEMENT NEGOTIATIONS
As a result of the COVID-19 pandemic and the lockdown, industry finds itself in survival mode and the consequences for the M&E sector are going to be severe for both employers and employees.
Negotiations will not start as anticipated and the delay will have a number of consequences, namely:
- the current Main Agreement negotiating timetable and cycle has been detrimentally affected, with the consequence that negotiations will not take place as previously planned; and
- whilst it is not impossible to open negotiations, the reality is that there is little time between now and 30 June 2020. This makes planning for a round of negotiations near-impossible, given the expected continuation of restrictions on movement, gatherings, etc.
Given the state of the sector and the devastation caused by the lockdown, there is a possibility, in the absence of negotiations taking place, of the current agreement remaining in place for a minimum of four to six months or possibly until 30 June 2021.
At the earliest available opportunity, the SEIFSA Council appointed Main Agreement Negotiating Team will call for an urgent meeting with the trade unions to discuss not only the way forward but, more importantly, what is doable under the prevailing economic and business circumstances.
We will keep the membership informed of all developments in this regard.
Issue 14 - 2017 Wage Negotiations Update
Today SEIFSA and all five trade unions registered with the Metals and Engineering Industries Bargaining Council (MEIBC) signed an important Settlement Agreement that concludes this year’s negotiations, averts any possibility of industrial action and lays the groundwork for industrial peace and stability for the next three years. A copy of the comments that I delivered at the signing ceremony this morning is attached hereto for your information.
The Agreement comprises the following key elements:
- A three-year agreement effective from 1 July 2017 to 30 June 2020;
- A collective undertaking by all the parties to seek the extension of a new, consolidated Main Agreement to all non-party employers and employees in the industry;
- An undertaking by all the parties to ensure that the application to extend the Agreement is not legally defective and that it is fully compliant and aligned with the relevant provisions of the Labour Relations Act 66 of 1995, as amended;
- The retention of Clause 37 (the protection clause against a compulsion to bargain at plant level), coupled to a full and final settlement clause locking in all the terms and conditions of employment contained in the Main Agreement and this Settlement Agreement – including those matters highlighted for on-going discussion during the currency of this Agreement (e.g. medical aid, housing, etc.) to a no-strike clause for the duration of this Agreement (i.e. until 30 June 2020);
- Wage increases on actual rates of pay across the board (i.e. from Rate A to H) of 7% in 2017, 6,75% in 2018 and 6,5% in 2019;
- An exemption provision entitling companies which are members of one of the employer parties to this Agreement to apply for exemption from the 2017 wage increases within thirty (30) days of the signing of the Settlement Agreement (i.e. by no later than 22 September 2017) and on or before 31 July 2018 and 31 July 2019 in years two and three respectively of this Agreement; andAn undertaking to back-date the increases to 1 July 2017 in return for the trade unions having honoured a commitment not to issue a strike notice, whilst negotiations were still continuing in good faith, in an endeavour to reach an agreement.
The opportunity to apply for an exemption is not available to companies which are not members of employer parties (Associations) which are not party to this Agreement.
The wage tables for 2017, effective from 1 July 2017, have been posted together with this Update issue.
A member company wishing to apply for a wage exemption should refer to the SEIFSA Management Brief Wage Increase Exemptions available on www.seifsa.co.za, which provides valuable guidance and assistance to members in making successful wage exemption applications. The brief also contains the requisite Bargaining Council exemption application questionnaire.
Member companies requiring any assistance in completing the necessary documentation are invited to contact the staff of the Industrial Relations and Legal Services Division, on (011) 298-9400, for advice and assistance.
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 negotiations process.
We remain clear in our minds about our roles: member Associations, through the SEIFSA Council, developed the negotiating mandate. Working with representatives from the respective Associations, the SEIFSA Negotiating Team implemented that mandate to the letter and did everything in its power to arrive at the best possible deal under the circumstances.
We are immensely grateful to the SEIFSA Board, the SEIFSA Council, our member Associations and every member appointed to be part of the SEIFSA Negotiating Team that was so ably led by our Operations Director, Lucio Trentini.
The three-year (2017 to 2020) Settlement Agreement is the fruit of their collective labour.
PDF versions of the tables and the Wage Increase Exemptions are attached below.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Issue 13 - 2017 Wage Negotiations Update
The Trade Unions and SEIFSA today agreed to request the Bargaining Council to convene a Signing Ceremony on Wednesday, 23 August 2017 at the Offices of the Bargaining Council in order to reconvene formally and officially to endorse and finalize the Settlement Agreement covering the period 1 July 2017 to 30 June 2020.
Delays which have taken place in this process, which have been frustrating to many who have been following the negotiations with keen interest, are regrettable. As previously indicated, we have to guard against rushing matters in these crucial, closing stages and, in the process, putting at risk all the hard work that has been undertaken to date.
All Parties have communicated the proposed deal to their respective constituencies and the overwhelming majority remain firmly on track to close negotiations on the parameters of the proposed deal set out in Issue 11 of this Update.
Once all the Parties have officially ratified the Settlement Agreement, the SEIFSA Office will immediately post the Wage Tables on our website (www.seifsa.co.za). A comprehensive Management Circular will follow immediately thereafter.
We will continue to keep you and the SEIFSA Council informed of any new developments, should there be any, in this process.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Issue 12 - 2017 Wage Negotiations Update
Feedback received following requests from the five trade unions and the SEFSA-affiliated Associations for time to communicate the proposed deal to their respective constituencies confirms that the overwhelming majority of parties remain firmly on track to close negotiations on the parameters of the proposed deal set out in Issue 11 of this Update.
Regrettably, finalising mandating and constitutional requirements takes time, but we expect that, by the end of this week, we will be in a position to confirm a date for all the Parties to reconvene formally and officially to endorse and sign the Settlement Agreement.
We apologise for the delays, which we know are frustrating to many who have been following the negotiations process with keen interest. However, we cannot rush matters in these crucial closing stages and put at risk all the hard work that has been undertaken to date.
Once all the Parties have officially ratified the Settlement Agreement, the SEIFSA Office will immediately post the Wage Tables on our website (www.seifsa.co.za). A comprehensive Management Circular will follow immediately thereafter.
We will continue to keep you and the SEIFSA Council informed of any developments, should there be any, in the closing stages of this process.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Issue 11 - 2017 Wage Negotiations Update
The SEIFSA Council today received a report that the industry is inching closer to approving a Settlement Agreement that is likely to see all the trade unions agreeing to a Settlement Framework that will bring this year’s negotiations to a successful conclusion, avert industrial action and lay the groundwork for industrial peace and stability up to 30 June 2020.
All the trade unions and the SEIFSA-affiliated Associations have requested time to communicate the proposed deal to their respective constituencies and will revert with their respective positions in the course of this week. The Settlement Framework comprises:
- A three-year Agreement effective from 1 July 2017 to 30 June 2020;
- A collective undertaking by all signatories to seek the extension of a Consolidated Main Agreement to all non-party employers and employees;
- The retention of Clause 37 and the Full and Final Settlement Clause locking in all terms and conditions of employment contained in the Main Agreement for the duration of this Agreement;
- A wage model that introduces wage increases, on actuals, across the board (i.e. from Rate A to H) of 7% in 2017, 6,75% in 2018 and 6,5% in 2019; and
- A joint commitment to continue discussions, during the currency of this Agreement, on a range of strategic and vitally important industry issues.
We expect the formalities relating to the ratification of the Settlement Agreement to be concluded in the course of the next week to ten days.
Once all parties have ratified the Settlement Agreement, the SEIFSA Office will immediately circulate the Wage Tables and post them on our website (www.seifsa.co.za). A comprehensive Management Circular will follow thereafter.
We will continue to keep you and the SEIFSA Council informed of any developments, should there be any, in these engagements.
Issue 10 - 2017 Wage Negotiations Update
A sub-committee of the Negotiating Team appointed by the SEIFSA Council met with all five trade unions today in an effort to bring this year’s negotiations to a successful conclusion and avert the prospect of industrial action.
Details of the meeting will be shared with the SEIFSA Council at its meeting on Monday, 7 August 2017.
We will continue to keep you and the SEIFSA Council informed of developments in these engagements. No agreement will be concluded with labour in such engagements unless it has the prior approval of the SEIFSA Council.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini
Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270 I
E-mail: lucio@seifsa.co.za
Issue 9 - 2017 Wage Negotiations Update
As you are no doubt aware, the Bargaining Council’s Sub-Committee appointed to resolve the dispute declared by the trade unions on 15 June 2017 concluded its deliberations on 6 July, without reaching an agreement.
In accordance with the mandate from our member Associations, SEIFSA has been engaging directly with labour and other key stakeholders on its own. To date, we have had a series of bilateral engagements with NUMSA and other trade unions, in an effort to avert a strike and to find a solution that is in the best interests of our constituency and the industry.
Representing SEIFSA in such bilateral engagements have been Senior Employer Representatives appointed by the SEIFSA Council, as well as SEIFSA’s Executive Management Team and some SEIFSA Board Members.
To date, no certificate or notice of strike action has been served and we remain confident that for as long as we are engaged in good-faith negotiations to deal with the few remaining issues on the negotiating table, we can avoid a strike and, more importantly, we can find a solution that is in the best interests of our constituency and the industry. Bilateral engagements with all key role players are continuing in earnest and we anticipate another anxious week’s wait before we may be able to present something concrete to the SEIFSA Council for its consideration.
A SEIFSA Council Meeting will take place on Monday, 7 August 2017 and we hope that by then a clearer picture of the situation will have emerged. In the interim, we expect the remainder of this week and next week to be normal, with little or no prospect of industrial action.
We will continue to keep you and the SEIFSA Council informed of any developments, should there be any, in these engagements. Once again, no agreement will be concluded with labour without the prior approval of the SEIFSA Council.
Kaizer M. Nyatsumba
Chief Executive Officer
For Information:
Lucio Trentini Operations Director
Direct | Tel: 011 298 9414 | Fax: 011 298 9514 | Cell: 082 449 6270
E-mail: lucio@seifsa.co.za
Web: www.seifsa.co.za