All 31,000 members of the National Union of Metalworkers of South Africa (NUMSA) are continuing their walk out in a dispute centering on wage claims.
The union began striking last Wednesday (11 August) in a bid to secure wage rises of 15% plus a range of other demands that automotive employers estimate would add more than 30% to their cost structure.
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“Industrial action is happening today,” NUMSA national spokesman Castro Ngobese told just-auto from South Africa. “We are having consultations with our members – 31,000 are on strike.”
As well as the 15% salary hike, NUMSA is demanding an eight hour day Monday to Friday and that all short-term contractors be entitled to all benefits – and employed permanently after three months.
It is also requesting Saturday working be paid at one-and-a-half times the normal rate and Sundays and public holidays at double the normal level. NUMSA is also asking for six months of paid maternity leave and short time lay-off payments of 100%.
However, the Automobile Manufacturers Employers Organisation (AMEO) has rejected NUMSA’s demands, insisting they are unrealistic and would hamper an industry struggling with what it claims is a “relative lack of competitiveness.”
AMEO has instead offered a 7% wage increase for 2010, based on a three-year agreement with increases in subsequent years linked to inflation.
In a statement emailed by NUMSA to just-auto concerning the start of concerted action last week, the union remained adamant its demands be settled.
“It has never been our intention to embark on strike action but because of AMEO’s stubbornness we are compelled to take the battle to the streets on Wednesday, 11 August 2010,” it said.
“Ours will neither be a picnic nor a fan park but a metalworkers’ militant action until our demands are met.”
But AMEO insists its dependency on exports and relative lack of competitiveness requires “moderation” when it comes to wage increases.
“The industry has in recent years become export-dependent and our shareholders and investors require long-term agreements to ensure industrial stability and continuity of supply,” it said in a statement.
“As a result of strike action the employers stand to lose more than 2,100 cars per day, of which 50% are destined for export markets and employees will lose over R8m (US$1.1m) per day in total wages and benefits.”
