Minister of Small Business must intervene to save small business in the Metal and Engineering sector
The settlement reached by the MEIBC, Numsa and Seifsa this week demonstrates the staggering hypocrisy that dominates current discourse about the importance of small business to South Africa's economy and is at the heart of the FMF's legal challenge to Section 32 of the Labour Relations Act (LRA). Unions, government, employers, the media, analysts, commentators, everyone, it seems, believes passionately in nurturing small business. How, then, can this settlement have been welcomed with such relief by anyone who says they care about small business? The reality is that this agreement sounds the death knell to thousands of smaller companies in the sector.
Only the employers' organisation NEASA is holding out on the side of small business by refusing to sign because it sees through the agreement to the devastating impact it will have on smaller firms and employment prospects for the current and soon to be unemployed workers. NEASA sees the emperor's clothes for what they are, yet it is being slated for its pains and stands accused of struggling for power with Seifsa.
As an entrepreneur and businessman, I know first hand the risks of employing even one extra worker and I implore the new Minister of Small Business to immerse herself in the detail and consequence of this - and similar - bargaining council agreements and to act to stop this agreement being extended by the Minister of Labour who, tragically hamstrung by S 32, has no say in the matter.
The recent developments in the MEIBC negotiations reflect the unholy alliance between unions and large business. Big business (represented by Seifsa) has agreed to increases for the next three years without being concerned about the impact on small business. NEASA, representing small businesses, has refused to sign the agreement because it will put many small players out of the industry.
Numsa and Seifsa appear to have adopted the stance that the views of NEASA (i.e. small businesses) do not matter presumably because they believe they will get the agreement extended in terms of S 32 to non-parties to the agreement i.e. small businesses who were not at the bargaining table.