NUMSA secures an above inflation wages and historic housing deal for workers in in Engineering
13 May 2024
The National Union of Metalworkers of South Africa (NUMSA) welcomes the signing of a 7% increase which is above inflation, in the engineering sector. NUMSA participated in wage talks, as the largest union representing the majority of workers in the Metals Engineering Industries Bargaining Council (MEIBC). This deal is progressive because currently consumer price inflation is at 5.3% and despite the poor economic outlook, the union continues to secure increases which are truly beneficial to workers and their families.
At the same time, we have agreed to ring-fence funding for workers in the Engineering sector to be able to access housing as part of this deal. This is truly historic because it has never happened before in the Engineering sector that such a commitment has been made, and we are proud to say it was NUMSA that spearheaded these achievements for workers. NUMSA believes that at all times, workers who are responsible for creating the wealth, must also able to benefit by accessing housing.
The deal is broken down in the following way:
1. This is a three year wage agreement which is valid from 1 July 2024 until 30 June 2027.
2. For the first year of the deal workers will receive 7% increase.
3. For the second year of the agreement workers will receive 6%.
4. For the third year of the agreement workers will receive 6%.
5. The increases are based on the minimum rates of pay, and not on the actual rates of pay.
6. The parties have agreed to forge a partnership with stakeholders including unions, employers and government. The matter of housing will referred to the Board of Trustees of the Funds (MIBFA) with the objective of developing an institutional framework, covering amongst other issues the eligibility, legal criteria, funding model/s, subsidy mechanisms and this must be done by no later than 3 months from the signing of the agreement. All processes and principles pertaining to accessing funds must be lawfully conducted.
The NUMSA General Secretary Irvin Jim says.
“The union received an overwhelming mandate from all the nine regions in NUMSA. We took a decision not to do traditional collective bargaining, but instead, we demanded that employers improve on the current agreement. We are happy that we secured an above inflation agreement because the base is higher at 7% and also the confirmation that workers will access housing. This is the role of unions, to fight to improve the lives of workers and their families and we are happy that NUMSA continues to do so”.
Aluta continua!
The struggle continues!
Issued by Irvin Jim, NUMSA General Secretary, 13 May 2024
