SABC News reported that the National Union of Metalworkers of South Africa has given employers in the steel industry until next week to reach a wage settlement with the union or face a crippling strike action. NUMSA spokesperson, Mr Phakamile Hlubi-Majola says informal talks are currently underway to try and resolve the impasse but members are ready to down tools if an agreement is not reached soon.

Wage negotiations in the sector collapsed last month and there’s still no resolution in sight. NUMSA, which is the majority union in the sector, is demanding an 8% wage increase across the board. Employers are offering 4.5%. Moreover, employers want an exception to allow struggling companies to pay less than the national minimum rate of between ZAR 21 and ZAR 49 an hour.

The steel industry remains a key pillar of the South African economy. It generates around ZAR 600 billion a year, mainly through exports. It’s also a big employer with around two million workers employed in big and small companies. There are three main steel employer organizations in the country. They are the Steel & Engineering Industries Federation of South Africa, the National Employers Association of South Africa and the South African Engineers and Founders Association. They represent close to 10 000 companies with a combined workforce of around 430 000 employees.

NUMSA Threatens Strike in South African Steel Industry over Wages

Strategic Research Institute

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