News


Wage negotiations deadlocked

16 August 2017 News

At the time of writing, wage negotiations are ongoing in the engineering and steel industries.

While trade unions have applied for a certificate to launch strike action within the South African engineering sector, this does not necessarily mean that strikes are now inevitable, nor that such action is the only option still available to workers in the sector.

That’s the view of Gordon Angus, executive director of the South African Engineers and Founders Association (SAEFA). SAEFA has appointed an independent lead negotiator to represent employers in the current wage negotiations with engineering and steel sector workers and their unions. “The reality is that strike action will be extremely detrimental to employees and the sector as a whole,” Angus emphasises, “not to mention the additional pressure that it will bring to bear on the already tenuous economic situation in the country.”

Angus points to Jonathan Goldberg’s appointment as an independent negotiator by SAEFA, at its own expense, as a clear indication by the Association and the more than 400 businesses it represents of their sincere desire to reach a solution that will prevent strike action while also setting a solid and realistic foundation on which the sector can build going forward.

However, he points out that reaching such a solution requires the same level of commitment by the labour representatives to acting in the best interests of all parties, particularly the financial wellbeing of the employees they represent.

“Offers presented by employers have been summarily dismissed by unions, indicating the absence of a sincere desire to reach a sustainable solution that benefits all parties,” Angus explains, “but rather a predisposition by the union towards strike action.”

He points in particular to NUMSA’s outright rejection of a proposal of a reduced entry-level wage for new employees in the sector as indications of the union’s unwillingness to find a solution that promotes the long-term sustainability of the sector.

“SAEFA and the other employer representative associations have repeatedly assured employees that the proposed lower hourly wage (initially proposed at R20 per hour, the same level as the national minimum wage) is only for new, unskilled employees in the sector,” he says, “and that this will never be passed on to existing employed, trained and experienced workers.” However, he says that unions appear unwilling to trust that this is the case, nor that the intention behind the lower entry-level wage structure is to make it financially viable for the industry to provide further work opportunities and training to even more South Africans, thereby helping to reduce the sharply rising and wholly unsustainable SA unemployment rates.

“I am confident that, if the parties are willing to come to the table with an open mind, and a willingness to consider all viewpoints and concerns, a solution can be found that avoids the potentially devastating consequences of industrial action, Angus concludes, “but agreeing on that solution will require a sincere commitment by the employers and the union to set aside any other agendas they may have and negotiate with the best interests – both current and future – of the entire industry in mind.”

For more information visit www.saefa.org.za





Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Electronic News Digest
News
A brief synopsis of current global news relating to the electronic engineering fields with regards to company finances, general company news, and engineering technologies.

Read more...
4000 A containerised DB for power project
News
Power Process Systems has successfully completed the design, fabrication, and commissioning of a 4000 A containerised distribution board for a wind/PV solar hybrid renewable energy project.

Read more...
Datacentrix Industrial Indaba 2025
News
Datacentrix recently hosted its inaugural Industrial Indaba 2025, where industry leaders explored how digitalisation, resilience, security and compliance are shaping the future of sustainable industrial operations in Africa.

Read more...
RS brings solar light to 150 000 people
RS South Africa News
The company’s three-year partnership with SolarAid aims to raise £1 million through corporate donations, matched funding, product contributions, and fundraising to accelerate access to safe, sustainable energy.

Read more...
Microchip and AVIVA Links collaboration
Altron Arrow News
Microchip and AVIVA Links have achieved groundbreaking ASA-ML interoperability, accelerating the shift to open standards for automotive connectivity.

Read more...
World’s leading supplier of grid automation products
News
Hitachi Energy was recognised as the global market share leader in grid automation for electric power transmission and distribution utilities by ARC Advisory Group.

Read more...
Vivashan Muthan appointed as head of export sales and operations at RS South Africa
RS South Africa News
With a career spanning engineering, business development, and sales leadership across sub-Saharan Africa, Vivashan Muthan brings a wealth of expertise to his new role as head of export sales and operations.

Read more...
Google equips university students across Africa with free access to advanced AI tools
News
A 12-month Google AI Pro plan has been launched for students in Ghana, Kenya, Nigeria, Rwanda, South Africa, and Zimbabwe to build foundational AI skills.

Read more...
Africa’s space economy projected to be worth $22,6 billion in 2026
News
South Africa is gearing up to be at the forefront of the growth in the space industry, creating thousands of jobs, driving innovation, and boosting the national economy.

Read more...
Distribution partnership with MacDermid Alpha
Testerion News
MacDermid Alpha Electronics Solutions India Private Limited has announced that as of 01 September 2025 Testerion will be the sole importer and distributor of their products to the South African market.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved