South African Engineers and Founders Association

13 January 2023

The metal and engineering industry is now under more pressure than ever before, following the COVID-19 pandemic and consequent lockdown.  Coupled with severe loadshedding and the extension of a Main Agreement that is unaffordable to many companies, this means that short-time, lay-offs and even retrenchments may need to be considered as means of survival. 

Legislation regulating these processes requires that specific procedures be adhered to.  These legal requirements can often prove daunting to employers, particularly those who have never implemented short-time, lay-offs or retrenchments before or who have not had to for some time.

21 October 2022

As you are aware the Minister of Employment and Labour has gazetted and extended the Main Agreement to non-parties with effect from 17 October 2022. It is obligatory to implement the Main Agreement provisions at all metal and engineering industry businesses. 

We have previously circulated a link to download the Government Gazette. If you may want to view the Technical Schedules contained in the Main Agreement they can be found below:

10 January 2023

As we are all aware, the situation within Eskom seems very unlikely to improve in the short term and all indications are that load shedding in 2023 will be more severe than it was in 2022.  To assist members in dealing with loadshedding in the workplace, please see the circular below which explains how short time may be implemented to lessen the effects of load shedding. 

The Main Agreement and Loadshedding January 2023

Also, please see some of the frequently asked questions raised by members:

20 October 2022

Please note that the Minister of Employment and Labour has extended the Administration and the Dispute Levy Agreements to non-parties effective from 17 October 2022.

  • The Administration Levy has increased from R1.72 per week to R1.96 per week and R7.45 per month to R8.49 per month.
  • The Dispute Levy has increased from 0.62 per week to R0.71 per week and R2.68 per month to R3.07 per month

See note below for the levies and contributions which are applicable to SAEFA member companies.



8 December 2022

Earlier today, the President announced that the 27th of December will be proclaimed a public holiday.  A statement issued by the Presidency can be viewed below.  Accordingly, we have updated the brief dealing with the payment of Leave Pay and Leave Enhancement Pay.  I will send a copy of the government gazette out as soon as it becomes available.

Annual Shutdown Arrangements 2022

7 October 2022

Despite receiving numerous objections from hundreds of employers in the metal industry, employer associations and industry lobby groups, the Minister of Employment of Labour has extended the Consolidated Main Agreement to non-parties.

The extension is effective as of 17 October 2022, making it obligatory to implement the Main Agreement provisions at all metal and engineering industry businesses. 

SAEFA will continue to explore all avenues with our legal advisors and will keep members abreast of developments as they occur.

The Government Gazette is available at the following link: Click on the first link under the Government Gazettes heading (472254_7-10_NationalRegulation)

Please note that this extension will necessitate the submitting of applications for exemption for many of our members. We will be running workshops and webinars on how to submit an exemption in the coming weeks. Please look out for those dates, which will be communicated early next week.

28 November 2022

Below is a brief which deals with the annual shutdown for 2022, including the calculating of Leave Pay and Leave Enhancement Pay for scheduled employees.

Annual Shutdown Arrangements 2022

Please contact us with any queries.

3 October 2022

Please see the attached below a S77(1)(d) notice by COSATU, which is based on the 2017 notice on economic crisis.  According to the notice, COSATU will embark on protest marches and pickets on 7 October 2022. The notices comply with the requirements of the LRA and the protest action will be protected.  This means that any employee that chooses to participate in the industrial action may not be disciplined for doing so, but the principle of no work, no pay will apply.  Also, employees who participate are not entitled to accumulate a shift for Leave Pay and Leave Enhancement Pay purposes.

COSATU Notice to Nedlac of Intention to Proceed with Protest Action