Motor retail, components sector wage negotiations still deadlocked

10th September 2019 By: Simone Liedtke - Creamer Media Social Media Editor & Senior Writer

The National Union of Metalworkers of South Africa (Numsa) on Tuesday voiced its “disappointment” after a meeting with employers in the motor retail and components sector failed to break a deadlock in wage negotiations.

Numsa met with the Fuel Retailers Association, Retail Motor Industry Organisation and the National Employers Association of South Africa, in Kempton Park, on Monday, in the hope that the Dispute Resolution Committee of the Motor Industries Bargaining Council would be able to assist in breaking the impasse.

However, no agreement was reached, Numsa said on Tuesday, stating that it believes “employers have no desire to resolve the impasse”.

The trade union says employers have “adopted a stubborn attitude” after allegedly not responding at all in detail to any of the union’s demands for its members.

“The burning issue is the peace clause which locks us into a wage deal of three years, and in that time, we are unable to negotiate benefits and conditions until the agreement expires,” the union laments.

Among its demands, Numsa is requesting a transport allowance for fuel station workers, who, on average, are said to earn about R20 an hour and, therefore, cannot afford alternative transportation. In this instance, the union has asked employers to provide transportation.

The union is also seeking a 12% increase in wages, as well as a review of the peace clause.

Employers, meanwhile, have proposed a 5% a year increase in wages over a three-year wage agreement.

The National Association of Automotive Component and Allied Manufacturers (Naacam) on Tuesday told Engineering News Online that it “remains focused on reaching an equitable agreement that attends to the needs of employees while securing stability for our industry during the bargaining period”.

It is important that this is achieved without unnecessary delay, Naacam added, highlighting that this should be done in a manner that “maintains harmonious relationships within the sector”.

Mediation will resume between the unions and employers on September 23 under the auspices of the Commission for Conciliation, Mediation and Arbitration.