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The National Employers' Association of South Africa (Neasa) on Monday lodged a review application in the Labour Court in Johannesburg to set aside the decision by Labour Minister Mildred Oliphant to extend the 2014 to 2017 wage agreement between the Steel and Engineering Industry Federation of Southern Africa (Seifsa) and trade unions to the rest of the metals industry.
“The Minister extended an agreement between trade unions, representing 34% of employees in the metals industry, and Seifsa, which represents about 15% of employers in the metals industry [to the rest of the industry],” Neasa CEO Gerhard Papenfus said.
He believed that the Minister did not consider any input as to the negative impact this decision would have on business and employment.
In November 2014, former Reserve Bank governor Gill Marcus criticised wage agreements of around 8%, saying it was unsustainable and a threat to jobs.
Seifsa had agreed to wage increases of 10% in July last year.