The statistics that matter regarding extension of agreements

South African Engineers’ and Founders’ Association

5 September 2018

At a meeting of the parties to the MEIBC held earlier this week, SEIFSA and the Plastic Converters’ Association (PCA) voted in favour of the extension of the Settlement Agreement reached last year between SEIFSA and the trade unions.  Should this extension succeed, the implications for the industry are as follows:

  • 1 037 companies (SEIFSA Association members) will be dictating to the remaining 9 194 about what happens in the industry.  10% of companies get to decide what happens irrespective of the views of the remaining 90%.
  • SEIFSA do not represent the majority of employees.  They represent 164 931 of the 424 365 employees in the industry, or 38%.
  • The new minimum wage for the industry will be R46.53 per hour.  Compare this for example to the new minimum rates under the Motor Industry Bargaining Council, which are under R30 per hour and the newly agreed National Minimum Wage of R20 per hour.  Add on costs included in the settlement agreement amount to an extra 35% or higher, meaning the effective cost to employers in our industry will be a minimum of well over R60 per hour.

The Plastic Converters Association has voted in favour of the extension of a settlement agreement which does not even apply to their members. 

The best way that every member can help us is to each bring one non-member company to join SAEFA.  Every company and employee we can count as one of ours, helps.  Non-members are currently benefitting from our fight, without us benefitting in turn from their numbers.  Members, please help us help you.