Wage Negotiation Advisory No. 30

South African Engineers’ and Founders’ Association

30 July 2020

At a CCMA-facilitated wage negotiation meeting held today, Thursday, 30 July 2020, SAEFA motivated its proposals to the parties to the MEIBC.  These were rejected by the trade unions and, shockingly, they advised SAEFA members to rather consider locking out their employees in order to achieve resolution.

The proposals were tabled by SAEFA in May this year to bring about sustainable terms and conditions of employment for employees in the industry:

  1. The ability to implement wage increases on minimum rates of pay and not actual rates of pay, to allow companies to average down the cost-of-labour components of their businesses over time
  2. To provide for a three-year agreement
  3. The revision of the current MEIBC Exemptions Policy, to allow for a more effective and expeditious exemption process
  4. To provide absolute protection against any negotiations over substantive issues from taking place at company level
  5. To ensure that shifts for the purposes of calculating Leave Enhancement Pay (“Leave Bonus”) are only awarded to employees who actually report for work
  6. To allow companies to, by agreement with their staff, work up to 45 hours a week at normal rates of pay
  7. That annual leave be limited to 3 weeks for all new entrants  
  8. The introduction of the following new entrant wage structure of R30.00 / hr at the lowest Grade, in order to:
  • Slow down or stop the rate of decline in the number of job losses in the metal and engineering industry
  • Create employment opportunities, particularly for young people


Minimum Hourly Rate


R                                 51,30

AA (6)

R                                 48,93

AA (start)

R                                 46,72


R                                 44,63


R                                 42,70


R                                 41,14


R                                 40,31


R                                 37,39


R                                 35,77


R                                 34,18


R                                 32,76


R                                 31,27


R                                 30,00


Despite the unions’ calls for members to lock-out employees, SAEFA believes that such a move is not appropriate in the current economic climate. 

The meeting was concluded with a request by labour for SAEFA to further articulate its position and to table a proposed agreement at the next meeting, which has been scheduled for 10h00 on 20 August 2020. 

We thank you for your continued support during this very difficult time and will keep members fully abreast of developments as they occur.