Trade union Solidarity has filed an application to the Labour Court to have the Metal and Engineering Industries Bargaining Council (MEIBC) put under administration.

Speaking to Engineering News Online on the sidelines of the launch of the union’s Save our Steel campaign on Thursday, Solidarity metal and engineering industry deputy general secretary Marius Croucamp said the bargaining council was operating under severe financial difficulty.

The MEIBC is the central organ where labour negotiations and disputes take place and are resolved and where industry wages are regulated and policed.

“The MEIBC is insolvent and there are judgements against it from creditors,” he said.

He explained that Solidarity, with support from the Department of Labour (DoL), wanted the court to appoint a competent person to oversee the financial activities of the MEIBC.

“We also want the court to appoint a competent person who is able to work with the various parties who are part of the organisation in terms of their relationships and guide them towards solutions,” he said.

Croucamp noted that attempts have been made to rescue the council, but there have been difficulties in getting all the parties involved to agree on what steps to take, which is why the trade union has been forced to take litigious action.

“We feel management structures and financial rehabilitation are two key areas that need to be addressed,” he said.

Croucamp pointed out that the bargaining council’s income is derived from levies which are paid by workers and companies in the industry that are part of the MEIBC.

“The last time the levies were adjusted was in 2011, which is unacceptable,” he said.

Croucamp added that the council’s budget had not kept up with inflation and for those levies to be increased to acceptable levels, there had to be a consensus between all parties involved.

“The politics has derailed that process. We want to rebuild relationships and get back to that consensus position,” he said. 

MEIBC RESPONDS
In response to the court order filed by Solidarity, MEIBC general secerary Thulani Mthiyana told Engineering News Online that the bargaining council would oppose the action on Friday.

He disputed Solidarity’s claims that the bargnaing council owes creditors money and is insolvent. “We owed two creditors R4-million and that debt was settled in March,” he said.

He pointed out that Solidarity had requested a meeting with the MEIBC to talk about the propsed court application.

“During the discussion, the parties realised that the major problem revolves around levy increases. [Further,] nine members have stopped paying levies which has had a major impact on our operations,” said Mthiyana.

He explained that the DoL had drafted a proposed settlement after meeting with different union representatives and employer organisations.

According to Mthiyana, Solidarity wanted the court to make the DoL statement a court order, which the MEIBC did not oppose.

However, the MEIBC has now realised that the union wanted only certain parts of the DoL statement made a court order, which the council did oppose.

He stressed that the MEIBC would only support the DoL proposal in its entirety.