SEIFSA comments on proposed Amendments to the Regulations to the Second-hand goods Act, 2009
SEIFSA COMMENTS ON PROPOSED AMENDMENTS TO THE REGULATIONS TO THE SECOND-HAND GOODS ACT, 2009
On 12 July 2024 the Civilian Secretariat for the Police Service published an invitation for public comments to proposed amendments to the Regulations to the Second-Hand Goods Act
SEIFSA as a Federation represents 18 Employer Organisations, who collectively represent in excess of 1300 companies and employ approximately 170 000 employees in the sector. The federations affiliated membership constitutes the entire metals value chain from metal production, merchants, metal fabrication, heavy and light engineering.
SEIFSA will be providing detailed comments in due course but wishes to provide its opinion on two main and critical issues and themes which emerge from the proposed amendments and which we believe:
- are not proportionate nor appropriate industry regulation to achieve the desired ends and minimize resultant harm; and
- will have severe unintended consequences and will offer no further assistance to Government to achieve the aims and objectives of the draft policy on measures to restrict and regulate trade in Ferrous and Non-ferrous metals waste, scrap and semi-finished ferrous and non-ferrous metal products to limit damage to infrastructure and the economy.
Enhanced Reporting Requirements
The proposed amendments envisage an enhanced reporting system which will require the submission of monthly electronic reports via the Metal Trading System (MTS) showing all purchases and sales of metal products. Whilst we support reasonable and rational reporting requirements to track the trade in scrap and waste metal (which are already required under the Second-Hand Goods Act), the submission of the very granular detail envisaged under the MTS has not and cannot be accepted by industry in its current form and its attempted introduction under the guise of an amendment to the Regulations of the Second-Hand Goods Act is not action in good faith.
There are a number of critical concerns regarding the proposed MTS and required information disclosure which we believe:
- render the required information disclosure open to legal challenge and review on the grounds of it being disproportionate, irrational , unreasonable and ineffective and not being the rational modus/response for curing the mischief that it is intended to curb;
- raise serious issues of disclosure and abuse of confidential and proprietary information which concern has been exacerbated by the security breach suffered by DTIC on 2 January 2024;
- will not assist the authorities as those involved in illicit trade will totally ignore and disregard any such requirements because criminal activity can never be managed by way of regulation. Regulations are adhered to by responsible and law-abiding citizens. Criminal activity requires efficient and stringent policing and the imposition of severe penalties and sanctions. Policing of illegal operators and illegal activity and criminality in the whole value chain across all metals in South Africa must be far better implemented and enforced in order to curb metal related crime in South Africa; and
- raises grave concerns over the disclosure of proprietary information to and possible abuse by individuals from government departments and law enforcement agencies who have been accused of being allegedly complicit in criminal conduct and/ or activities but have yet to be removed from their positions of authority.
Elimination of cash for all transactions
We are most concerned that the prohibition on the use of cash in scrap and waste metal transactions will result in unintended economic consequences and hardship for the informal sector/ waste pickers who comprise a large bona fide segment of the supply/ value chain.
The proposed blanket prohibition will threaten the very existence and viability of these bona fide and law-abiding participants and ultimately sterilise this critical component of the supply chain (approximately 350 000 waste pickers per DTIC published figure) and lead to economic devastation/ welfare ruin and enhanced poverty for these operators and all those many millions of our people who rely on them for economic support.
The vast majority of these waste pickers are not criminals dealing in stolen material but rather legitimate self-employed individuals who are desperately trying to eke out a lawful living collecting untainted scrap metal from legitimate sources and supplying it to registered dealers. These individuals from the informal sector, many of whom are unsophisticated and do not have the means cannot be expected to establish bank accounts or put in place other costly and sophisticated mechanisms/ channels for the receipt of funds electronically.
The major contributing factor by far to the damage to infrastructure stems from the procurement and trade in tainted copper and we believe that the aim of the draft policy on measures to limit damage to infrastructure and the economy will still be met and will not be undermined if allowance is made for this segment of the supply chain to be paid:
- in cash for all scrap and waste metal other than copper scrap and waste; and
- be paid in cash for copper scrap and waste but limited to R10 000 per transaction
We believe that it would be very unwise to eliminate this critical and crucial part of the supply chain who represent the very foundation of most recycling activities.
Next Steps
We believe that further constructive and meaningful engagement with the Minister and industry stakeholders must take place to find a path for greater self–regulation and pave the way for a lasting solution to eliminate theft and damage to infrastructure in a manner that is workable for all players so as to avoid the unintended consequences that some of the draft policy regulations will yield.
Rigorous and ineffective regulation yielding unintended consequences is not a desired outcome for all bona fide participants in the sector and indeed the economy of South Africa as whole.
Elias Monage
President: SEIFSA
SEIFSA and NUMSA conclude Historic Agreement in record time
After three formal engagements SEIFSA and NUMSA have concluded the terms of a historic three-year wage agreement for the period 1 July 2024 to 30 June 2027.
Following a bruising round of wage negotiations in 2021 which peaked in a three-week strike costing the industry in excess of R600 million rand per day in lost revenue, this year’s agreement was reached in record time, with no industry disruption and within mandate.
The SEIFSA affiliated membership which accounts for 57% of all employees, employed by all the employer organizations on the bargaining council and NUMSA representing in excess of 115 000 members signed the agreement today at the Birchwood Conference Centre in Boksburg.
“This agreement is a testament to the commitment by the social partners to seek a settlement as soon as possible and with minimal disruption,” said Mr. Trentini.
The agreement was reached on the foundation laid by the signing of a process agreement by all the parties prior to the commencement of the negotiations – this strategic innovative approach was also in itself an unprecedented event.
‘’The process agreement set the road-map to settlement, a pledge to negotiate in good faith, outlined the context, tone and architecture of the negotiations,” said Mr. Trentini.
This year’s agreement, as was the case in 2021, prescribes wage increases to be calculated on the scheduled or gazetted minimum rates of pay per grade over the next three years. Rate A in year 1 will receive 6%; Rate H 7% and in years two and three of the agreement, Rate A will receive 5% and Rate H 6% respectively.
Apart from wage increases and this year’s agreement being reached almost two months before the expiry of the current agreement – again an unprecedented feat (in 2021 agreement was reached in October), the deal contains no additional and/or immediate cost to employment concessions. Importantly however, the exemption and special phase-in exemption dispensation for employers who feel that a degree of relief from the agreement is required is retained. This is in direct response and a clear acknowledgement by the parties to also cater for SMME’s, their challenges, dynamics and sustainability.
“Of historical importance is the commitment by the parties to meaningfully address access to housing for industry workers,” Mr. Trentini said.
The parties have agreed to request the Board of Trustees of the Metals and Engineering Industries Benefit Funds, who oversee investments under management in excess of R149 billion, to develop an institutional framework, covering amongst other, eligibility and legal criteria, funding model/s, subsidy mechanisms and/or programmes and substantive policy approaches within three (3) months of the signing this agreement.
In addition, “stakeholders have agreed to convene and jointly formulate an industrial policy framework focused on re-building and repairing public infrastructure, alleviating bottlenecks constraining economic growth while ensuring the long-term sustainability of the metals and engineering sector,” said Mr. Trentini.
Finally, a number of outstanding issues have been identified and referred to various working groups and committees for further investigation, discussion and processing.
“SEIFSA applauds the trade unions for staying the course and living the bold, courage’s and ambitious goals and objectives embodied in the process agreement,” said Mr. Trentini.
“Three decades into our democracy it is heartening to witness that it is indeed possible for negotiating partners, in the heat of robust and adversarial collective bargaining to put the interests of the metals and engineering sector – and, indeed, the interests of our country – first,” Mr. Trentini said.
SEIFSA and unions call for a metals and engineering industries reconstruction, reindustrialization and development plan
SEIFSA AND UNIONS CALL FOR A METALS AND ENGINEERING INDUSTRIES RECONSTRUCTION, REINDUSTRIALIZATION AND DEVELOPMENT PLAN
Negotiations on the 10 April held between SEIFSA representing the 18 affiliated Employer Organizations, NUMSA, Solidarity, UASA, MEWUSA, SAEWA and NUM, culminated in the calling for a Metals and Engineering Industries Reconstruction, Reindustrialization and Development Plan in order to afford the industry an opportunity to re-set in an enabling environment underpinned by certainty, stability and industrial peace.
”With South Africa’s economic outlook unlike any experienced before, the time was ripe for parties to work together and more so, in the area of industrial policy, to construct a collective agreement that quickly and with minimal angst and anxiety settles the vexed issue of wages and brings all stakeholders together to jointly formulate a framework focused on re-building and repairing public infrastructure, alleviating bottlenecks constraining economic growth, while ensuring the long-term sustainability of the metals and engineering sector, which is critical to the reconstruction, reindustrialization and development of the economy.” Trentini said.
“SEIFSA applauds the trade unions for taking this bold and courage’s stand in putting the interests of the metals and engineering sector – and, indeed, the interests of our country – first. We remain cautiously optimistic that consensus will be found,” Trentini said.
The negotiating partners may just be on the verge of achieving something never achieved or at the very least never in the last three decades – and that is concluding an agreement during the currency of the existing agreement set to expire on 30 June 2024.
With negotiations set to continue on 24 April 2024, SEIFSA gave notice that it intends to reach out and work with all the employer and trade union stakeholders. The SEIFSA Council will also reconvene before the next round to receive a report back from the negotiators.
L Trentini
Chief Executive Officer
Union Demands Documentation
Updated Documents
MA Negs 2024_Process Agreement_Signed
MEIBC WAGES DEMANDS 2024 MEWUSA
MA Negs 2024_ Associations Demand Letter_Annexure E - SEIFSA's Affiliated Employer Organisations
MEIBC CEOSA 2024 Negotiation Mandates
NEASAs demands MEIBC 2024 (1) (1) (2)
NUMSA Engineering Demands 2024
SAEFA Proposals Annexure E 2024
UASA MEIBC WAGE DEMANDS 2024 (1)
Expect More from this round of negotiations
Incendiary rhetoric related to main agreement negotiations has been a recurrent issue post 2010 and as this year’s negotiations approach, expect more of it.
In an economy hit by double-digit contraction, battered by an unprecedented and alarming jobless rate and languishing in sub-optimal economic growth, what should the key stakeholders - organized business and labour – be doing to lift SA and this sector out of this mess? Are stakeholders capable of reaching common cause in order to turn things around or as we have come to expect, will employers and labour simply not be able to find one another where it matters most – at the negotiating table. Who would have imagined almost three decades into our democracy we still need to resort to strikes and lock-outs to resolve our differences? Collective bargaining in its crudest form is almost always about power and ideology and stubborn leaders convinced that they are right.
Our disillusionment with the system, the country and the future is a normal response and should be acknowledged. But once that’s done it does not help to dwell on the negatives. This should not be taken as naive optimism, just a realistic acceptance that things are indeed tough at the moment, but we will get through. Never waste a good crisis, they say. This industry has certainly been, and is still in the midst of a number of crises. Surely, opportunity must abound? Indeed, but in the collective barraging space, where business and labour are on opposite sides as adversaries, who has the courage to take the first step towards the middle? In any negotiation, presuming both parties are equally skilled, common interest plays a role in shaping the deal. Where common purpose cannot be found because of a perceived lack of mutual respect the deal will almost inevitably unravel.
In the metals and engineering industries the collective bargaining model has proven to be remarkably resilient. Undoubtedly it has come under sever scrutiny and strain over the last couple of years but it has survived and some would even suggest thrived. Resilience grows from taking constructive steps and building a common purpose. Without common purpose, crafting solutions to entrenched differences will remain elusive. It’s time for all role players to stand up and be counted. Notwithstanding our diverse ideologies as between business and labour and amongst business groupings, finding a way forward in tolerance and mutual respect is now, more than ever, desperately needed.
Insofar as this year’s round of negotiations is concerned, we know things will not be easy and the challenges facing us are many. South Africa’s economic outlook doesn’t look good and there is little business confidence. The notion of job retention and/ or job creation on the back of an alarming high unemployment rate fuelled by ongoing retrenchments and business closures, has become elusive.
Persistent load-shedding, the worst in more than a decade, shows no signs of ending. Spiking unemployment, widespread business failures and huge job losses point to negotiations this year taking place against a difficult economic landscape. It would be fair to say that only if labour and business find a way of working together do we stand a chance of turning things around. It’s also fair to say that the relationship between supporters and detractors of gazetted agreements remain strained. Litigation continuous and in all likelihood may well continue into the future.
Trust amongst all stakeholders must be rebuilt and the national discourse must find a way of transcending beyond purely wages and terms and conditions of employment. Once negotiations over wages and conditions of employment have been settled, the focus must urgently shift to more important priority interventions, where labour and business collectively can play a part in tackling the deep underlying failures preventing meaningful growth in SA and our sector.
- a long-term agreement;
- wages;
- gazettal and extension; and
- exemptions incorporating special phase-in dispensation.
Initiating Negotiatons for the Amendment of an existing Agreement in terms of Clause 10 and Annexure E of the MEIBC Constitution
25 March 2024
Mr. Sicelo Nduna
General Secretary
MEIBC
Facsimile: 086 636 8690
Email: sicelon@meibc.co.za
Dear Mr Nduna
INITIATING NEGOTIATONS FOR THE AMENDMENT OF AN EXISTING AGREEMENT IN TERMS OF CLAUSE 10 AND ANNEXURE E OF THE MEIBC CONSTITUTION: CONSOLIDATED MAIN AGREEMENT
SEIFSA, acting in accordance with the mandate of the member Associations contained in the attached schedule, request you, in accordance with Clause 10 and Annexure E (2) of the MEIBC Constitution to convene a negotiating meeting at your earliest convenience.
Insofar as this year’s round of negotiations is concerned, we know that things will not be easy and the challenges facing us are many. South Africa’s economic outlook doesn’t look good and there is little business confidence. The notion of job retention and/ or job creation on the back of an alarming high unemployment rate fuelled by ongoing retrenchments and business closures, has become elusive.
Persistent load-shedding, the worst in more than a decade, shows no signs of ending. Spiking unemployment, widespread business failures and huge job losses point to negotiations this year taking place against a difficult economic landscape.
It would be fair to say that only if labour and business across the board find a way of working together do we stand a chance of turning things around. It’s also fair to say that the relationship between supporters and detractors of gazetted collective agreements, like the Main Agreement, are strained. Litigation continuous and in all likelihood may well continue into the future.
Trust amongst all stakeholders must be rebuilt and the national discourse must find a way of transcending beyond purely wages and terms and conditions of employment.
Once negotiations over wages and conditions of employment have been settled, the focus must urgently shift to more important priority interventions, where labour and business collectively can play a part in tackling the deep underlying failures preventing meaningful growth in SA and our sector.
In light of the above the Associations federated to SEIFSA propose concluding an agreement which envisages affording industry an opportunity to re-set in an enabling environment underpinned by certainty, stability and industrial peace.
Industry negotiations over the years have created a set of comprehensive and favourable employment conditions for employees that are essentially unmatched across most bargaining councils. Hence, we do not wish to pursue any further amendments and/ or adjustments to benefits currently contained in the Main Agreement nor do we propose down varying existing terms and condition of employment. Equally important is our position on Section 37 of the Main Agreement i.e., that it must be retained.
Accordingly, we formally give notice that our approach to this year’s round of negotiations will be structured around four (4) broad principles or themes, namely:
- a long-term agreement;
- wages;
- gazettal and extension; and
- exemptions incorporating special phase-in dispensation.
As there is a nexus or connectivity between these four themes or business drivers, consensus must be reached on each of the drivers before an agreement can be considered.
We also propose that all outstanding issues be dealt with in-line with the provision as set-out in paragraph 6 of the signed-off Process Agreement and that this process commence immediately once a Settlement Agreement has been concluded.
In closing, it is our hope that the employer and trade union parties in the MEIBC will make every effort to successfully conclude the industry negotiations on or before the expiry of the current agreement on 30 June 2024.
We ask that you please bring the views of our member Associations, as articulated herein, to the attention of the party trade unions and the other employer organizations on the Council.
Yours Sincerely
Lucio Trentini
Chief Executive Officer
Cc: Elias Monage, SEIFSA President
Association Chairpersons
NEASA, CEO, SAEFA, (SA) UEO, FEOSA – by email
NUMSA; NUM, Solidarity; UASA – The Union; MEWUSA and SAEWA - by email
________________________________________________________________________________________
The List of Registered Employer Organizations’ Federated to SEIFSA and Party to the MEIBC
Association of Electrical Cable Manufacturers of South Africa
Cape Engineers’ and Founders’ Association
Constructional Engineering Association (South Africa)
Electrical Engineering and Allied Industries’ Association
Electrical Manufacturers’ Association of South Africa
Gate and Fence Association
Hand Tool Manufacturers’ Association
Kwa-Zulu Natal Engineering Industries’ Association
Iron and Steel Producers’ Association of South Africa
Lift Engineering Association of South Africa
Light Engineering Industries’ Association of South Africa
Non-Ferrous Metal Industries’ Association of South Africa
Eastern Cape Engineering and Allied Industries Association
Refrigeration and Air Conditioning Manufacturers’ and Suppliers’ Association
S.A. Electro-Plating Industries’ Association
S.A. Refrigeration and Air Conditioning Contractors’ Association
S.A. Pump Manufacturers’ Association
S.A. Valve and Actuator Manufacturers’ Association
SEIFSA report outlines risks for Metals & Engineering sector in 2024
The outlook for the South African Metals & Engineering sector in 2024 is not as bleak as it was last year, but risks — both local and global — remain high, according to the State of the Metals and Engineering Sector Report 2024, which the Steel and Engineering Industries Federation of Southern Africa (SEIFSA) released this week.
The report, which was presented in a webinar on February 20, examines the current state of the Metals & Engineering (M&E) sector amid moderating inflation and heightened geopolitical tension.
SEIFSA chief operating officer Tafadzwa Chibanguza, says “the geopolitical temperature is high, with wars in Europe and the Middle East and the subsequent attacks in the Red Sea.”
Aggregate production increased by 1.7% in 2023, slightly higher than the 1.5% in 2022 but still remains 18% below where it was in 2008/2009.
“Production has also not sustainably attained its pre-Covid lockdown levels and has been oscillating between 1-2 index points around this level,” Chibanguza said.
This is amid the “expectation for global economic growth to flatline into the medium term, which presents a neutral perspective on demand prospects from the external environment. Growth is primary tilted in favour of the advanced economies, which presents limited export opportunities given that Sub-Saharan Africa is the largest export market for the sector,” says Chibanguza.
Geopolitical risks include the ongoing wars in Europe and the Middle East, while locally the sector faces persistent load-shedding, logistical challenges, including the crisis at Transnet, deteriorating service delivery at municipal level, looming wage negotiations and the uncertainty of an election year along with the political noise that leads up to the event, he says.
“Whatever the outcome of the election, it presents risk as a lot of work has been done in terms of macro-economic policy around for example energy and public procurement. . A new administration means dealing with new members of parliament and a new cabinet.”
On the positive side, inflation is subsiding faster than expected, particularly in the advanced economies, which should allow for hard currency rate cuts, which in turn should set the scene for global monetary policy, says Chibanguza.
Global inflation is set to decline from 6.8% in 2023 to 5.8% in 2024, and 4.4% in 2025, which should set the scene for interest rates to start coming down. Declining interest rates presents a scenario for investment in the economy to hopefully start picking up which in turn is a good demand source for the metals and engineering sector. It will also decrease the pressure on debt service costs for the state, possibly creating fiscal headroom, for state spend into the economy, which again is another important source of demand for the sector. Lastly, lower interest rates should also provide room for companies in the metals and engineering sector to increase investments into their operations, which is particularly important given the negative net investment trend that has underpinned the sector since 2008, which has also resulted in the sectors fixed capital stock deteriorating at a rate of 0.8% (CAGR) over the same period.
While work has been done to revive the economy, reforms take time for their full effect to be realised, but unfortunately the sectors potential will remain constrained for as long as too many local companies remain in survival mode due to the array of challenges they face.
Industry Wage Negotiations Kick-off
INDUSTRY WAGE NEGOTIATIONS KICK-OFF
Negotiations this year will take place against a very difficult economic background. The sector is still in the throes of deep distress. A fragile economy, spiking unemployment, widespread business failures and huge job losses will no doubt test our mettle.
On a positive note, talks-about-talks are already well underway and to date all the parties have signed-off on a process or relationship agreement and a declaration to negotiate in good faith. A pre-bargaining conference was held on 7 February and a negotiating timetable has been agreed. Whilst all this on the surface may not seem to amount to much, it is all unprecedented and hopefully a sign that the difficulties we find ourselves in are shared by our union counterparts.
In terms of the timetable the following has been agreed:
| Month | Process | Comments |
| 7th February | Pre-Bargaining Conference | Understanding Industry Issues and Challenges |
| 25th March
|
Submission and Exchanging of Demands and Triggering
Annexure E of the Council Constitution |
Finalize respective parties demands, exchange of demands and triggering
Annexure E |
| 10th April | Commencement
of Negotiations |
Commencement of negotiations |
| 24th April | Negotiations | Negotiations |
| 8th May | Negotiations | Sign-off |
You will observe we have set a tight time-line with the aim of settling early, within mandate and with minimal disruption. We understand how difficult this will be but this time round, parties are faced with a set of daunting circumstances that simply cannot be ignored. Manufacturing performance is anything but encouraging, persistently high interest rates, electricity outages, failing logistics and weak demand have all lead to a sector that is under siege.
Mandating, tactics and strategy will play a key role in delivering a sound agreement. We ask that member companies play their part in supporting their respective Associations who play an important role in formulating a consolidated mandate that allows the Main Agreement Negotiating Team to develop the tactics and strategy.
At the outset I extend a note of immense gratitude to all members of the 2024 Main Agreement Negotiating Team who during the process, will sacrifice an inordinate amount of time, effort and energy – over and above their day-to-day jobs – supporting the Office and me in ensuring that we meet the goals we have set.
This will be a difficult round but, in the end, we will succeed if we just stay the course.
Lucio Trentini
Chief Executive
SEIFSA position on Scrap Metal Regulations
Johannesburg, 5 FEBRUARY 2024. In anticipation of the Minister of Trade, Industry and Competition, Minister Patel’s, decision on the way forward regarding the scrap metal regulations and following the extended public comment period which closed on the 12th of January 2024, SEIFSA encourages the Minister not to take a narrow and short-term view on the matter, but rather consider the broader consequences of the decision and what is best for the industry in the long-term.
With the benefit of hind-sight the undeniable facts that should be factored into the Minister’s decision making are that the scrap metal export ban was not at all effective in combating infrastructure damage and theft of scrap metal. The imposition of the export ban has caused more economic harm than good. This is evidenced, inter alia, by the policy being one of the contributing factors to the announcement by ArcelorMittal South Africa (AMSA) on the possible closure of its long-products business. The export ban also communicated a very poor economic signal where blunt industrial policy instruments are deployed to combat crime, which resulted in a myriad of unintended consequences.
The lapsing of the scrap metal export ban on the 15th of December 2023 and the extension of the public consultation period to the 12th of January 2024, has brought to the fore the fact that alternatives to an export ban are a very real possibility.
The first of which is the development of an industry pledge, co-created by the DTIC and industry to work together to combat the movement of illegitimate scrap metal. This will be done by, inter alia, the phasing out of the use of cash in scrap metal transactions, rigorously inspecting the origins of scrap metal and an industry zero-tolerance approach to purchases of scrap metal from unidentified sources or where the product may reasonably be suspected to be from stolen public infrastructure. The industry remains committed to signing such a pledge that is underpinned by these principles. These interventions will go a very long way in combating the movement of illicit scrap metal without the need of resorting to an export ban.
Moreover, industry in the up and downstream segments remains committed to working with the DTIC and Government more broadly in the development of industrial policy framework that is sustainable and conducive to the growth of the industry. However, a pre-condition for the successful development of this industrial policy framework is ensuring demand for steel and related products through consistent and large-scale public projects. To date this has been a major constraint to the economic benefits of the steel sector, which has resulted in production contraction and a structural decline in employment.
The industry is willing to remain engaged and work with the policy makers in finding sustainable solutions to the complex challenges facing the industry, however, the policy path adopted needs to be holistic and not inadvertently create pockets of tension between different segments of the industry. .
Find the middle ground to avert collapse
South Africa’s metal and engineering sector, which is used as a measure of the overall economy’s performance is living through unprecedented times and we can confidently say we are facing a bleak year. The last three years have been extremely challenging and the next twelve months look set to be no less challenging.
The sector continues to face many risks and uncertainties such as the return of loadshedding, bottlenecks at Transnet’s sprawling logistics infrastructure and policy uncertainty ahead of the 2024 national and provincial elections. Confidence in South Africa is at a record low. And yet, the sectors recovery is crucial for the country’s economic prospects, as it has the potential to boost productivity gains for the economy, exports, investment, innovation and job creation. The number of ever-increasing unemployed people should instill a sense of urgency into fixing our economy. Failing that, we run the risk of entrenching the kind of poverty that can upend the social compact that underpins our democracy.
Times are tough in the country now. The news seems relentlessly depressing. Intense anger grows because so many of the problems closing businesses and killing jobs could have been avoided. Our disillusionment with the state of our country, industry and the future is normal, but once that’s registered, leaders across the board must find it within themselves to move the conversation beyond the doom loop.
Employers and trade unions at a Metal and Engineering Industries Bargaining Council (MEIBC) meeting on Tuesday, 30 January signed a landmark process or relationship agreement giving the green light for the commencement of the 2024 round of wage and conditions of employment negotiations under a set of rules, guidelines and guiding principles that to date have been absent from our engagements
Starting is easy, staying the course tests one’s mettle, finding common ground and closing the deal is a reflection of having found common purpose. But at the heart of the matter are the basis and nature of industrial relations in SA, which by definition place capital and labour permanently on opposite sides as adversaries.
In collective bargaining, only when the parties find sufficient intersections of common inputs to a solution to be generated is a deal possible. In a traditionally adversarial setting and particularly when the going gets tough and faced with the prospect of negotiations completely unravelling, the side that takes the first step towards the middle is most likely to get the best deal; if there is a middle.
This year industry negotiations take place against a landscape that is unprecedented. Bargaining partners are faced with a number of crises ranging from economic (energy, supply chain, inflation, interest rates etc.) socio-economic (rising unemployment, spiraling cost of living) and a macro and micro economic scenario that point to a sector that is showing very little prospects of real, meaningful, jobs rich, inclusive economic growth.
Yet, in spite of all these challenges the parties have signaled their intent to engage one another at the negotiating table. As a precursor to the formal engagement process the parties have framed in a signed agreement how they intend engaging and interacting with one another. Further, a pre-bargaining conference will be held in order to clearly understand the landscape industry finds itself, with the aim of understanding industry’s challenges, prior to each party returning to their respective constituencies for a mandate.
Parties this year have set themselves the ambitious target of settling withing the currency of the current agreement, which lapses on 30 June 2024. This amounts to an unprecedented achievement but then again, this industry is known for doing what most thought impossible.
In the final analysis, we have no option but to persevere, if we steadfastly stick to thinking we’re right and the other side is wrong, the centre won’t hold and collective bargaining will collapse. No common purpose, no industrial peace, no progress.
The process or relationship agreement brings together a spectrum of diverse ideologies between and amongst different employer and trade union groupings with the hope they can move forward in prosperity, tolerance and harmony, maybe impossible to imagine. But, as Lao Tzu so aptly puts it, "A journey of a thousand miles begins with a single step," an inspiring reminder of the importance of taking that first step, regardless of the obstacles that may lie ahead.