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:

From the editor's desk: AI – a double-edged sword
Technews Publishing News
As with any powerful tool, AI presents challenges, some of which, if not carefully managed, threaten to undo the potential that it can offer.

Read more...
Global semiconductor sales increase
News
The Semiconductor Industry Association (SIA) has announced global semiconductor sales were $57,0 billion during the month of April 2025, an increase of 2,5% compared to the March 2025.

Read more...
Avnet Abacus announced new president
Avnet Abacus News
Avnet Abacus has announced that Mario Merino will succeed Rudy Van Parijs as president of Avnet Abacus, effective 1 July 2025.

Read more...
Avnet Abacus wins multiple prestigious awards
Avnet Abacus News
The awards from Molex recognise outstanding performance, collaboration, and significant growth in the challenging market conditions of 2024.

Read more...
Components distribution slowdown Q1 2025
News
European components distribution (DMASS) experienced a continued slowdown in the first quarter 2025.

Read more...
Semiconductor sales increase 17% YoY
News
The Semiconductor Industry Association (SIA) recently announced global semiconductor sales were $54,9 billion during the month of February 2025, an increase of 17,1% compared to the February 2024 total.

Read more...
Silicon Labs – Q1 results
News
Silicon Labs, a leading innovator in low-power wireless, recently reported financial results for the first quarter, which ended April 5, 2025.

Read more...
Strengthening industry through strategic partnerships at KITE 2025
Specialised Exhibitions News
The KwaZulu-Natal Industrial Technology Exhibition is not just an exhibition, it is a powerhouse of industry collaboration where visitors and exhibitors gain access to authoritative insights, technical expertise, and high-impact networking opportunities.

Read more...
Solar Youth Project calls on industry to step up
News
With the second cohort completed training and the first cohort returning for their final module, host companies are urgently needed to turn the training into a long-term opportunity.

Read more...
Conlog powers SA’s future with national smart meter rollout
News
Conlog recently secured the RT29-2024 contract from National Treasury, which is seen to be a major milestone towards modernising SA’s utility infrastructure.

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