Mystery surrounds the status of any negotiations taking place in South Africa as the enormous strike that has paralysed the country’s automotive industry, enters its third day.
The South African metalworkers union, NUMSA, has called out its members resulting in what it claims is a total of 31,000 striking workers who have completely halted South African auto production, with the pay dispute showing no immediate signs of resolution.
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But there is confusion as to whether or not talks are actually taking place, with the employers body, NAAMSA (National Association of Automobile Manufacturers), maintaining there are “engagements,” although it declined to outline what form these were taking.
“There are on-going engagements between unions and employers, other than that we can’t say anything,” NAAMSA director, Nico Vermeulen, told just-auto from South Africa. “There are engagements – there is an exchange of offers – that sort of thing.
“It is very difficult to be more specific.”
The union claims seven OEMs, as well as truck and bus companies, have been forced to suspend operations in the dispute that has seen NUMSA demand a 14% wage increase coupled with benefits, while the employer body has offered 8%.
“The talks must change something and must lead to agreement – I can’t convene talks just to reiterate what we said last time we met – that is counter-productive,” NUMSA chief automotive negotiator Alex Mashilo, told just-auto from South Africa.
“What will make more impact are talks aimed [at] shifting position towards agreement. From a South African perspective, 8% is nothing.”
To illustrate his point, Mashilo claimed monthly take home pay after deductions was R3,500 (US$343), but that amount was deemed too much to trigger housing benefits.
“That is why we have shacks and squatter settlements,” said Mashilo. “What NAAMSA does not tell you is the conditions in which workers live. These workers are living under miserable conditions.
“In South Africa there has to be a recalibration between wages workers earn and conditions under which they live – the two must go together.”
As well as the 14% pay demand, NUMSA is also asking for a monthly contribution of ZAR750 towards housing costs and R125 per week as a transport allowance.
The labour body maintains statutory deductions for unemployment insurance, medical cover and retirement plans, do not leave enough to cover rent and family expenses.
NAAMSA countered its workers were among the most rewarded in South Africa, with stable job prospects and good employment conditions.
The Automotive Employers Association (AMEO), which is mediating in the dispute, was not immediately available for comment.
