The National Union of Metalworkers of South Africa (Numsa) has signed a new wage agreement with steel producer ArcelorMittal South Africa (AMSA).
The agreement – which is valid from April 1 this year to March 31, 2026 – will be binding on all permanent AMSA employees in Newcastle, Vanderbijlpark, Vereeniging, Pretoria, Durban, Richards Bay and Saldanha Bay.
The agreement will be backdated to April 1, which means workers will receive back pay.
The wage agreement includes a 6.5% increase for years one and two, while year three will see an increase in line with the consumer price index (CPI) but capped at 6.5%.
Moreover, employees will receive a one-off cash signing bonus of R10 000.
In addition to these wage adjustments, medical aid subsidies will increase by 6.5% in the first year. However, in the second and third years it will increase by CPI but capped at 6.5%.
AMSA’s contribution towards medical aid will remain at 60% for the employer and 40% for employees in the first year.
However, in year two, the company’s medical aid contribution will increase to 65% with the workers’ contribution dropping to 35%, subject to the medical subsidy cap.
In the third year, AMSA will pay 70% of employees’ medical aid costs and employees 30%.
All allowances will increase by 6.5% in the first and third years. However, for year two, all allowances will increase by CPI but capped at 6.5%.
Additionally, the paternity benefit will increase from 10 to 12 days, while the funeral benefit will increase from R10 000 to R20 000 in the first year of the agreement.
“We welcome the signing of this agreement particularly because . . . we were on the verge of a strike. However, we managed to find one another and this has been crucial in resolving this round of wage talks,” Numsa general secretary Irvin Jim said in a May 8 media statement.