It is reported that South Africa trade union Solidarity has accepted a three year pay pact with metals and engineering industry employers ordering striking members back to work. But the strike goes on as the National Union of Metalworkers of SA is still consulting regional structures on the new offer. Numsa is expected to reach a decision shortly.

As per report employers raised their offer to inflation plus 3%, and included other favorable terms in the package. The above inflation offer is seen as a strategic victory prompted by dire lack of skills in an industry preparing for increased demand as the state and private sector ramp up capital expansion projects.

Mr Alistair Smith CEO or of metal and engineering industries bargaining council said employer body Seifsa had nudged up its offer to 8% for Rate A workers and 9% for Rate H workers just short of unions' demand for 10% across the board. The increase is backdated to July 1st 2007 Rate A workers will get rises of 7% in the second and third year of the agreement and Rate H workers 8% over the next two years.

Mr Brian Angus ED of Seifsa said the offer tops those across sectors during this year's negotiation season while Solidarity accepted it and the remaining unions Numsa and Uasa were holding out for higher pay rises. Second and third years were still a sticking point.