SABRINA DEAN – The National Employers Association of South Africa says current collective bargaining wage negotiation legislation amounts to a conspiracy against smaller businesses.
Neasa Chief Executive Gerhard Papenfus has warned bargaining federation Seifsa that it will go to court to prevent an unaffordable increase agreement being enforced across the industry. He says Neasa represents about 3000 members, most of whom are smaller players in the industry, and that their members cannot afford the offers being tabled by Seifsa.
"Numsa recently said, in a meeting where I was present, that over the last five years, the industry has lost 250 000 jobs. The General Secretary of the bargaining council recently said on national television that the industry has lost 750 000 jobs. There are more-or-less 400 000 employees left in this industry.
"After each and every deal that Seifsa has struck in the past, it led to immediate loss of jobs," he says.
He says the agreements are unsustainable and in the past have almost immediately led to employers having to resort to retrenchments and mechanization.
The Steel and Engineering Industries Federation of SA (Seifsa) has meanwhile condemned Neasa’s stance as propaganda. CEO Kaizer Nyatsumba said in a statement Seifsa "dismisses with contempt" allegations by Neasa that it has betrayed the interests of small business.
He added that Numsa has not yet reverted with a response to the offer tabled on Tuesday but says it is the very last offer and will be removed from the table if not accepted.
Seifsa this week tabled a three-year wage offer of between eight and 10 percent for different levels of workers in the first year.
The first category of worker has been offered seven percent in 2015 and 2016, while the others have been offered nine percent in the second year, and eight percent in the final year. It also scrapped its demand for the wages of entry-level workers to be halved.
Neasa has offered eight percent, subject to an agreement on the reduction of the entry-level wage.
Numsa is meanwhile demanding a 12 percent wage increase with effect from July 1, a R1000 housing allowance in a one-year bargaining agreement and a total ban of labour brokers. Their demand was originally for 15 percent.
Numsa said in a statement it will hold a media conference on Sunday to give an update on the revised wage offer. National spokesperson Castro Ngobese said Sunday’s briefing will be addressed by General Secretary Irvin Jim, President Andrew Chirwa and other national office bearers.