POLITICS

MEIBC agreement to be extended across engineering sector - SEIFSA

Non-parties to agreement will have to comply with 8% to 10% wage increases

INDUSTRY SIGNS THREE-YEAR AGREEMENT

SEIFSA and the six industry trade unions signed a three-year settlement agreement today for the period 1 July 2011 to 30 June 2014. The agreement provides for a staggered wage increase from 8% to 10% for skilled and unskilled hourly-paid employees respectively. The agreement also includes the landmark establishment of an Industry Policy Forum.

Neasa refuses to sign the Settlement Agreement

SEIFSA is disappointed with Neasa's decision not to sign the industry's Settlement Agreement today on the basis that their demands for a lower entry level grade for new employees and their priority to create work were "brushed off the table".

"This is inaccurate, because the issue of the lower entry level grade as well as the issues relating to the plight of small and medium companies, addressing unemployment and creating employment policies will be addressed by the Industry Policy Forum using a regulation and compliance route," explains Lucio Trentini, SEIFSA's operations director.

The IPF has been tasked with investigating a number of key strategic challenges facing the industry, in particular, how to create sustainable employment within the sector and to promote a competitive manufacturing capability in the domestic and global markets. A number of the proposals that were on the bargaining table have been referred to this forum for discussion.

SEIFSA will do everything in its power to ensure that the agreement this year will be gazetted and extended by the Minister of Labour to all parties and non-parties in industry.

It is important to note that according to the latest independent and external audit conducted by the Metal and Engineering Industries Bargaining Council, SEIFSA represents 25.6% of employers (i.e. 2 279 companies) in industry who collectively employ 53.1% of all scheduled employees in industry (i.e. 178 242 employees).

"On this majority alone, with the support of the unions, the Main Agreement will be gazetted," says Trentini.

Statement issued by Lucio Trentini, SEIFSA Operations Director, July 18 2011

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