The Steel and Engineering Industries Federation of Southern Africa (Seifsa) has tabled a revised conditional wage offer aimed at securing an agreement for the metals and engineering sector.
Seifsa is offering a 4.4% increase, which is equal to the Consumer Price Index (CPI) rate in April, across the board for year one.
Its offer for the second year is an increase of CPI plus 0.5% and, for the third year, CPI plus 1%.
Seifsa operations director Lucio Trentini says that, considering the state of the sector, companies are continuing to find it difficult to stabilise their businesses in the face of ongoing challenges.
In an attempt to slow down the haemorrhaging of jobs, this terms agreement is presented with the aim of awarding increases on schedule rates – as opposed to the past practice of implementing increases on actual rates of pay, he adds.
Linked to the offer is a special phase-in dispensation aimed at encouraging small and medium-sized employers who, over the last ten years, have elected not to be covered by the main agreement, to come on board and, over a 15-year period, work to achieve parity with the main agreement rates – while continuing to enjoy the remaining benefits associated with the agreement.
The unions and the employer associations affiliated to Seifsa have undertaken to revert back to their respective constituencies and all sides will return to the negotiating table on July 28.