The National Union of Metalworkers of South Africa (NUMSA) has stated it is currently mobilising for the mother of all strikes at ArcelorMittal South Africa (AMSA).
In a statement issued by the union, NUMSA Regional Secretary Kabelo Ramokhathali explained that the trade union reached a deadlock in its wage negotiations with AMSA and was on the verge of a strike.
“NUMSA is the majority trade union representative within AMSA nationally and we will be embarking on the dispute resolution process which may lead to a full-blown strike, if AMSA management does not make a meaningful offer to settle this round of wage talks,” said Ramokhathali.
NUMSA said that on 27 March 2023, parties reached a consensus on the following issues:
- 2% increase in employer contributions to pension funds.
- 70% and 80% contribution to medical aid in 2024 and 2025 respectively.
- Nine-day paternity leave per occurrence.
- Increase of R20 000 for funeral benefits
However, according to NUMSA, AMSA has decided to withdraw the 2% pension fund increase and the proposed 70% and 80% contribution on medical aid for the second and third year respectively.
“We view this decision as divisive and provocative, which has the potential to cause industrial action. AMSA withdrew the 2% increase on the pension fund and also withdrew the medical aid contribution due to the fact that we did not accept their proposed 5% wage increase. We view this as a form of blackmail and we reject it with the contempt it deserves,” emphasised Ramokhathali.
NUMSA has now reverted back to its initial demands which include the following:
- One year agreement
- 15% increase across the board
- 4 month long fully paid maternity leave
- R5000 housing allowance
- 80% contribution on medical aid by the employer and 20% contribution by the employee
- 100% short time and lay off payment
With the union voicing several gripes and demanding the steel giant meets their demands, Ramokhathali pointed out that NUMSA is mobilising for the mother of all strikes within the Steel Belt of Vanderbijlpark, Newcastle and Vereeniging precinct, with there being a possibility of a secondary strike.
“We are currently convening general meetings in all AMSA centres as part of giving feedback to our members to mobilize them for industrial action,” said Ramokhathali.
NUMSA said it has confirmed a date with AMSA management for a dispute meeting, as prescribed by the terms of the collective agreement.
According to NUMSA, the meeting is set to take place on 24 April 2023 and AMSA would have to make meaningful proposals, in order to prevent a full-blown strike.
Tami Didiza of ArcelorMittal South Africa explained that AMSA began its annual wage negotiations with both its recognised trade unions, NUSA and Solidarity on 20 February 2023 and subsequent negotiations followed.
“Both unions tabled their offers and in return management tabled its own demands. With follow up negotiations, it was announced that the South African economy had declined in size by 1.3% in the last quarter of 2022,” said Didiza.
On top of this, he said that AMSA management also emphasised that the company is being severely impacted financially due to, among other factors, a decrease in the steel demand, a decrease in steel prices and an increase in raw material cost. Additionally, he said the detrimental impact of both unaffordable tariff increases and a lack of service in the electricity and rail sector is hurting the company.
“Management stressed to unions that their demands are completely unreasonable. The initial demand from NUMSA, together with 15% salary demand amounted to a 27,5% increase in salary cost and Solidarity an amount of 18.9%. During these negotiations management showed that ArcelorMittal South Africa remunerates its employees above that of the market when compared to industries of similar size, number of employees and revenue level. Coupled with this is that 54% of employees are remunerated above their level of competency,” elucidated Didiza.
He further explained that after several negotiations, all parties revised their initial demands and positions.
Despite the difficult economic and financial circumstances, Didiza said that on 5 April 2023, AMSA made significant concessions to achieve a settlement in the interest of all concerned.
“NUMSA rejected our offer and Solidarity was to seek a mandate and revert with a response,” he said.
The consolidated offer made by ArcelorMittal, for a 3-year agreement, consists of the following:
- Year 1:2023: 6% increase in wages and a once off payment of R5000Year 2: 2024: CPI (3% minimum capped at 6.5%)
- Year 3: 2025:CPI (3% minimum capped at 6.5%)
- Paternity leave increases from 10 to 12 consecutive days
- Funeral benefit increases from a maximum of R10 000 to R20 000
With this in mind, Didiza said it should also be noted that while ArcelorMittal was willing to buy out the retention allowance as a part of its consolidated offer, this was rejected by the trade unions, resulting in a negative position for employees once this is implemented.
“The internal dispute resolution process requires that 2 dispute resolution meetings are held with both unions, and these are scheduled to take place in April 2023. Should the dispute remain unresolved the unions have the right to refer the dispute to the Centre for Dispute Resolution (CDR) which has 14 days within which to assist in trying to resolve the dispute,” he explained.
As has been explained before, Didiza said the offer tabled by ArcelorMittal is more than reasonable and compares favourably with recent industry wage settlements. This is especially when considering the level of ArcelorMittal remuneration against industry benchmarks.
Didiza further pointed out that the ArcelorMittal offer, if accepted, will improve the lives of all employees and ensures certainty for everyone, in that, employees are aware of the salary increases over the next three years.
“We have further communicated to the unions that market conditions are worsening, and that ArcelorMittal needs to take steps to ensure that it remains sustainable. This means that ArcelorMittal cannot settle the negotiations beyond what is affordable as this would be irresponsible. We have now received their response and unfortunately both unions rejected the offer tabled by ArcelorMittal and are in dispute with the company. Today, we are in discussions with Numsa to see if we can reach a settlement in the interest of all concerned,” concluded Didiza.
With a potential strike now looming and this all in mind, what are your thoughts? Share your views in the comment section below.
