For the first time in a decade, the metals and engineering sector has settled a three-year wage agreement without resorting to industrial action, but the Steel and Engineering Industries Federation of Southern Africa (Seifsa) admits that none of the parties who signed the agreement are “entirely” happy.
The agreement, concluded after four months of negotiations, resulted in a 7% increase for the current year, effective July 1; a 6.75% increase for the second year; and a 6.5% increase for the third year.
Over the last ten years, the industry’s wage negotiations were characterised by industrial action – a week-long strike in 2007, a two-week strike in 2011 and a month-long strike in 2014.
The 2017 to 2020 metals and engineering sector settlement agreement, signed late last month, marks the way forward for Seifsa and five trade unions: the National Union of Metalworkers of South Africa, Solidarity, Uasa, the Metal and Electrical Workers Union of South Africa and the South African Equity Workers Association.
“We believe it is the best possible agreement that we could reach under the circumstances, and we believe that it is fair to both [labour and employer] parties,” Seifsa CEO Kaizer Nyatsumba said at the signing ceremony at the Metals and Engineering Industries Bargaining Council’s offices, in Johannesburg.
“The process was long and hard, and there were considerable challenges along the way, but we are hugely relieved that, finally, we and our labour partners were able to reach a historic agreement on realistic wage adjustments for the next three years,” he said.