Proposed Metal and Engineering Industry Settlement
17 July 2011, Johannesburg South Africa
As a prelude to the discussion on what should constitute a settlement in the metal and engineering industry strike, the 14th July 2011 Numsa NEC in it's analyses of the metal and engineering strike made the following conclusions;
Metalworkers in South Africa overwhelmingly heeded Numsa's call to withdraw their labour in a national strike in the metal and engineering industry to demand a living wage and therefore we saw strong, militant and resolute strike action from Monday 4 July 2011 to improve the livelihood and buying power of metalworkers;
Numsa members and our Numsa negotiators defeated the neo liberal and two tier labour market proposals of engineering employers which were locked up in the following;
- demand to move from a 40 hour working week to 45 hours;
- a new entry rate of pay 40% less than the current industry minimums;
- automatic exemptions for SMME's;
Had employers succeeded with these proposals it would have meant the downward variation of our hard won gains that we have achieved through blood and sweat. For this the NUMSA NEC congratulated the Numsa national bargaining team for remaining steadfast in their rejection of these employer proposals.
Numsa's engineering strike officially launched Cosatu's Living Wage Campaign as resolved by the Cosatu Central Committee held on 27 - 30 June 2011. The Cosatu Living Wage Campaign is underpinned by the fact that the working class and the poor in our society is underpinned by a triple crises of stubborn unemployed, deepening levels of poverty and mounting levels of inequalities spearheaded by the Apartheid Wage Gap.
The battle for a living wage happens in the context of an unbridled South African capitalist economy rooted in the colonial character of Colonialism of a Special Type (CST) and a failure of our ANC Government to embark on a decisive break from the macro economics of GEAR to a new growth path trajectory that is redistributive in it's outlook and in accordance with the dictates of the Freedom Charter.
NEC reflection on previous wage settlements in the metal and engineering sector:
In weighing up our options in terms of the current wage offers and core areas in dispute, the NEC reflected on previous settlements in the MEIBC over the past 4 years in relation to the CPI as well as the duration, labour broker and wage agreements in the Auto, Tyre and Motor sectors;
In this context the 10% wage increase for 2011 has an improvement factor of about 5.9% which may slightly assist the buying power of workers. This improvement factor was essentially what Numsa members were striking for and succeed with.
The 2011 settlement with Seifsa:
Numsa wish to point out that employers have taken a cheap shot by reporting that Numsa signed an agreement with them on Friday 15th July 2011. This propaganda created unnecessary problems amongst workers and had the potential to scuttle the proposed settlement of the industry strike.
The real facts are that the Numsa NEC on 14th July 2011 debated the proposed settlement generated by the negotiators and recommended that the nine (9) Numsa regions report back to striking Numsa members on Friday 15th and Saturday 16th July 2011. The Numsa NEC convened today, Sunday 17th July 2011, received feedback from our Numsa Regions indicating that 8 out of 9 Regions adopted the proposed settlement recommended by the Numsa NEC. Amongst others the deal with employers involves the following;
On Labour Brokers:The parties have agreed to following principles which will effectively see the phasing out of Labour Brokers in the metal and engineering sector;
- Discourage and minimise the use of temporary employment services in the industry
- Encourage the permanent employment relationship between the employer and employee in the industry.
- No employer shall require the procurement of employees from a Temporary Employment Service for any period beyond 4 months in terms of the Limited Duration Contract in the Main Agreement
- Where a worker works for a period beyond the terms of the contract such workers shall become permanent.
- All workers procured through Temporary Employment Service will enjoy all existing terms and conditions of employment outlined in the Collective Main Agreement and may not be granted a package rate exemption, which takes into account all benefits payable to employees as an hourly rate of pay, other than overtime and Sunday time.
- Procured workers may not elect the option of choice in becoming members of the retirement schemes offered to employees in the Metal and Engineering Industries.
To better monitor the prevalence of employees procured by Temporary Employment Service, a separate monthly return to the Metal Industries Fund Administrators must be endorsed by a client in the industry whose workers have been procured through a temporary employment service to confirm the period for which employees are procured and the number thereof in each instance of procurement.
Where an employer intends to use temporary employment service workers in scheduled occupations in the direct production process on a permanent basis, then clause 37 (i.e. the no-strike clause) should not be construed to limit the parties' right to take industrial action in accordance with the provisions of the Labour Relations Act.
Night shift transport:
An employer may only require or permit an employee to perform night work (meaning work performed after 18h00 and before 06h00 the next day) if transportation is available between the employees place of residence and the workplace at the commencement and conclusion of the employee's shift
Family responsibility leave
The parties agree to amend the compassionate leave provision of the Sick Pay Fund Agreement to allow for an accumulation of the existing 3 days per annum compassionate leave over a 3-year cycle.
It is the intention of the parties that this mechanism in conjunction with the existing provision on FRL in the Main Agreement will effectively entitle an employee to accumulate up to 18 days family responsibility leave over a 3-year cycle.
Technological change
The parties agree to amend the notice provision to provide for a 4 months' notice period in circumstances where a company wish to make technological changes. This is to prevent that machines replace workers.
The Settlement:
Based on the above and other improved benefits, the Numsa NEC held on Sunday 17th July 2011 endorsed the settlement with Seifsa and workers would therefore return to work in the next 48 hours starting on Monday 18th July 2011. Numsa shall engage Seifsa employers on the universal principle of NO WORK - NO PAY - NO DISCIPLINE.
Future battles
Numsa and its members stand ready to actively participate in the Cosatu Living Wage Campaign which will see rolling mass action to demand;
1. Banning of Labour brokers by the parliament in 2011
2. A legislated minimum wage across the board in South Africa
3. Regulation of executive pay
4. Disclosure of Company Profits
5. Decent housing
6. Scrapping of the property clause
7. Implementation of the National health Insurance
8. Free, universal and quality public education for the poor until undergraduate level
9. Changing labour Legislation to provide full pay during maternity and paternity leave.
10. An end to the financialisation of basic foodstuffs through prices that are determined in speculative financial markets
11. A review of multilateral and investment agreements that continue to plunge the working class into poverty through, for instance, trade liberalization that destroys the capacity of communities to produce food locally
This and other battles of the working class are more than necessary if we are to reverse the triple crises of unemployment, poverty and inequalities in our society.
End of statement:
Statement issued by Irvin Jim, NUMSA general secretary, and Karl Kloete, NUMSA deputy general secretary, July 17 2011
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