The National Union of Metalworkers of South Africa (Numsa) has declared a deadlock in wage negotiations with the Steel Federation of Southern Africa (Seifsa).
Seifsa and labour unions Numsa, Solidarity and Uasa on July 28 continued with negotiations over the proposed 4.4% wage increase offer.
The other participating unions have expressed a willingness to continue with negotiations.
Seifsa says its offer is aimed at industry survival, growth and recovery against all the employer organisations on the bargaining council, including the National Employers Association of South Africa.
The federation explains in a statement issued on July 28 that South Africa is still counting the costs of the looting and destruction that took place in KwaZulu-Natal and parts of Gauteng earlier this month, but early estimates put the damage at between 0.4% and 0.85% of gross domestic product, equating to about R50-billion.
“On the back of what unfolded over the last two weeks, business confidence generally took a huge knock and it is expected that investors and business owners will be even more reluctant to reinvest in the sector.
“The protagonists of last week’s looting have truly set this industry back in dealing with the survival and recovery of the sector. There will be job losses adding to those already lost from the pandemic and unemployment will once again soar in the months to come,” Seifsa laments.