Wage Negotiation Advisory No. 17

South African Engineers and Founders Association

8 August 2017

We have been reliably informed that SEIFSA and NUMSA have entered into an agreement with regard to wage increases.

The deal reportedly contains none of the SAEFA proposals that we believe are critical to the future survival of our industry.  Contrary to what was agreed by all the employer associations at negotiations on 6 July, SEIFSA immediately broke ranks and entered into bi-lateral negotiations with NUMSA (as previously predicted).  All other proposals put on the table by SAEFA and the other employer associations, have been excluded. Amongst these proposals, critical to the employer interests, are:

  1. Wage increases on minimums
  2. New entry level wage structure

These proposals were put on the table by SAEFA in order to address the critical, structural problems facing employers in the metal and manufacturing industries.  It now appears that, without any consultation with the other employer parties, SEIFSA and Numsa have reached the following agreement dealing purely with percentage increases on actual wages, namely 7% for year one, 6.75% for year two and 6.5% for year three.  Support for the purported SEIFSA/Numsa deal would mean that we would not be able to address any of these non-wage issues for the next three years, leaving the industry on the same destructive path as it has been on for at least the past decade.

We will keep members posted as soon as more information becomes available and a meeting of members will be called to discuss any proposed settlement agreement.

Members are encouraged to contact Gordon on 083 412 1437 for further information.

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