Engineering sector strikes still avoidable if all parties show the will

Johannesburg; 20 July 2017 - In response to the warning by the National Union of Metalworkers of South Africa (NUMSA) that it intends taking industrial action to ‘shut down’ the country’s engineering sector, The South African Engineers and Founders Association (SAEFA) today said that it seems that that NUMSA does not really have the desire to avoid strike action, despite the massive financial repercussions this will have on all employees in the sector, whether union members or not. Responding to the comments made by NUMSA general-secretary, Irvin Jim, at a press briefing on Tuesday, Gordon Angus, SAEFA Executive Director, said that the move by the union is not unexpected, but it is entirely unnecessary. “As previously stated in the media, SAEFA has been aware of NUMSA’s apparent desire to initiate strike action, seemingly at any cost,” Angus said, “as evidenced by their unwillingness to participate meaningfully in any of the dispute meetings thus far.” Angus pointed out that while the other unions involved in the negotiations at least made attempts to counter the offers put on the table by employers in the sector, NUMSA had not contributed to any of the discussions, choosing rather to stick resolutely to its initial demands. “To reach a successful conclusion, any negotiation process requires a measure of ‘give-and-take’ from all parties,” Angus emphasised, “but the counter offers presented by the various unions barely changed from the initial demands – with NUMSA not changing at all, with the ongoing insistence that wages must increase by an amount that is almost triple the current inflation figure.” Angus explained that a demand for a 15% increase, on top of wage rates that are already impacting negatively on the global competitiveness of South Africa’s engineering and metals manufacturing sectors, is simply untenable. “NUMSA’s unwillingness to budge on their unrealistic 15% increase, or to discuss the other demands made by employers, provides a clear indication that the organisation has always had the sole intention of initiating a strike,” Angus pointed out, “which, as all stakeholders know, will not only impact the industry, but will also cause immense financial hardship - not just for union members, but for all employees in the sector and their families.” He also restated his earlier warning about the long-term negative impact that strike action will have on the sector and the SA economy as a whole. “Industrial action doesn’t just have an immediate effect on an industry,” he explains, “the impact can linger for years afterwards, especially in terms of limiting future employment opportunities that could otherwise have been created had long-term growth not been stunted by strikes.” In this regard, Angus also points to the other major sticking point in the negotiations, which is the employers’ suggestion of a R20 per hour starting wage for new, unskilled employees. This is lower than the current minimum wage of R40 per hour and sparked fears amongst the unions that the lower earnings would ultimately be passed on to all workers, including those who have extensive work experience. “The R20 per hour starting wage suggestion represents the sincere effort by employers to stimulate sustainable job creation and sustainability in the industry by making it affordable for them to take on and train additional staff,” Angus explained, “we understand that one employee earning R40 an hour may find it difficult to support an extended family, but if the lower starting wage provides employment for additional family members, the total financial burden on households will effectively be lessened.” Angus is adamant that despite NUMSA’s claims that employers are ‘imposing’ strikes on their employees, the opposite is, in fact, true. “Employers earnestly want to avoid industrial action and remain very willing to do whatever they can to find a solution to this impasse that meets the requirements of all parties,” he explained, “but a negotiation requires more than one participant and we urge all the unions, and particularly NUMSA, to demonstrate their commitment to protecting the best interests of their members and of the industry and country by putting aside their plans for strike action and joining employers at the table for a genuine and transparent negotiation process.”