Court halts extension of steel pay agreement
Employer body refuses 10% deal
THE National Employers Association of SA (Neasa) yesterday won a court interdict blocking attempts to extend this year’s wage agreement to its members in the metals and engineering sector.
It believes that the deal struck between other employer bodies and six trade unions following a strike in July is unaffordable and does not address the growth crisis in SA’s manufacturing sector.
The organisation has flatly refused to implement the wage agreement signed at SA’s largest private sector bargaining council, and some of its members have locked out their workers.
In terms of the three-year agreement, workers will get increases of up to 10% over the next three years.
Neasa, the largest employer body by number of companies represented at the Metals and Engineering Industries Bargaining Council, yesterday secured an interim interdict at the Labour
A decision by the minister not to extend the agreement risks destabilising the whole industry
Court. The court agreed to hear arguments on, among other issues, whether decisions made at the council’s annual general meeting last year were in line with the body’s constitution.
The bargaining council’s management committee was constituted in a way that did not accurately represent the relative strength of some employer organisations, Neasa CEO Gerhard Papenfus said yesterday.
The July wage deal was signed by all parties in the council, except Neasa. The Steel and Engineering Industries Federation of SA (Seifsa) said at the time that it had signed reluctantly.
Seifsa warned this month that the manufacturing sector would “almost certainly contract” this year. Statistics SA figures for July showed a 17% decline in production compared to June this year — 40% lower than a 2007 peak.
Neasa said it had been sidelined during the wage talks, where it offered an increase of up to 8% and insisted on concessions from labour aimed at improving growth in the manufacturing sector.
Mr Papenfus said the legal challenge was “about the future existence of small business”. It followed a refusal by the National Union of Metalworkers of SA (Numsa) to return to negotiations, he said.
The majority of members of the bargaining council voted last week in favour of asking the minister of labour to extend the wage deal across the sector, including to parties that had not signed the July agreement.
Metals and Engineering Industries Bargaining Council general secretary Thulani Mthiyane said yesterday that the council was obliged to follow the decisions taken by voting members.
The council was strictly neutral when arbitrating between members of organised business and labour, he said . All due processes had been followed before the management council voted on the extension of the wage deal.
The council’s management committee had been properly constituted. “The court did not pronounce on that matter,” Mr Mthiyane said.
“We expect that when we argue the matter in full court proceedings in November there will be a decision that does not undermine collective bargaining.”
Numsa sector bargaining coordinator Steven Nhlapo yesterday accused Neasa of playing “dirty political games” in order to boost its membership and finances. Participation by all other parties in the agreement meant it was “more than sufficient” to request an extension, he said.
“A decision by the minister not to extend the agreement risks destabilising the whole industry … which is the core of manufacturing,” said Mr Nhlapo.
Numsa’s leaders had resolved at the weekend to provide support for its members who were locked out, while the union’s mobilising efforts continued, he said.
Numsa had unsuccessfully sought an interdict against the continuing lockout by some of Neasa’s members.
Fewer than 100 Neasa member companies, primarily small businesses, have locked out their members, and some have locked out only one or two employees.