Neasa holds Numsa to wage agreement

Labour Minister Mildred Oliphant has signed Numsa’s agreement of a 10 percent wage hike with Seifsa.

FILE: Mildred Oliphant has signed Numsa's agreement of a 10 percent wage hike with Seifsa. Picture: Numsa.

JOHANNESBURG - The National Employers Association of South Africa ( Neasa) says it intends holding the National Union of Metalworkers of South Africa ( Numsa) to its Labour Court commitment to a reduced salary hike for its members at affiliated companies and the allowance of a 50 percent cut in wages of new workers.

Labour Minister Mildred Oliphant has signed Numsa's agreement of a 10 percent wage hike with the Steel and Engineering Industries Federation of South Africa ( Seifsa) and this means the deal is extended to all companies.

But Neasa has consistently opposed this and demanded that companies with less than 50 workers are exempt and those with more only increase wages by only seven percent.

Over 200,000 Numsa-affiliated workers downed tools at steel and engineering companies across the country for a 10 percent wage hike on 1 July, halting production at automakers including General Motors and hitting work at new power plants.

The union and other employers in the metal and engineering sector brokered a deal on 28 July, ending the almost four-week long strike.