At today’s Bargaining Council Management Committee Meeting all parties agreed to continue negotiations in a smaller sub-committee in an endeavour to break the deadlock caused by NUMSA declaring a dispute against the eighteen SEIFSA affiliated Employer Associations, NEASA, SAEFA and CEO. Thus far, only NUMSA have declared a dispute and only the SEIFSA affiliated Associations have registered a counter dispute against NUMSA arising out of the trade unions refusal to accept the SEIFSA settlement offer tabled on 28 July 2021.   

This settlement offer is based on four inter-related pillars namely: duration, wage increases, extension and 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.       

The 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 4,4% adjustment this year translates to the following impact on the industry’s general wage table:

 
RateCurrent Minimum Wage Rate 2020Guaranteed Personal IncreaseNew Entry Level Wage  Rates 2021
 R cR cR c
A84,753,7388,48
AA(6)80,833,5684,39
AA(start)77,183,4080,58
AB73,733,2476,97
B70,533,1073,63
C67,962,9970,95
D66,582,9369,51
DD61,762,7264,48
DDD59,102,6061,70
E56,472,4858,95
F54,102,3856,48
G51,652,2753,92
H49,552,1851,73

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

As we enter this crucial phase of the negotiations and notwithstanding our commitment to working around the clock to avoid industrial action, members are 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.

As a first step in preparing for this worst case scenario the SEIFSA Industrial Relations and Legal Services Division have prepared a comprehensive Strike, Picketing and Lock-Out Handling Management Guideline  which we urge you to download.

This Management Guideline can be downloaded at: https://bit.ly/3AqgreA

Rest assured that SEIFSA on behalf of its affiliated Employer Associations 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.

Lucio Trentini

On behalf of the SEIFSA Affiliated Employer Associations