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South African Metalworkers Strike Ends with Wage Deal

  • The South African metalworkers striked started this month on July 1 and ended this week guaranteeing workers a 10 percent wage increase over the next three years (AFP).

    The South African metalworkers striked started this month on July 1 and ended this week guaranteeing workers a 10 percent wage increase over the next three years (AFP).

Published 29 July 2014
Opinion

After a month-long strike, South African metalworkers announced their return to work starting Tuesday following a new wage deal.

The National Union of Metalworkers of South Africa (NUMSA), South Africa's largest union representing more than 338,000 members, signed a wage deal on Tuesday guaranteeing an 8-10 percent annual pay increase over the next three depending on worker's earnings. However, not all companies have accepted the new deal.

NUMSA General Secretary Irvin Jim told reporters, "The settlement offer has been overwhelmingly and unanimously accepted by our members. This is a massive victory given the pittance offer at the point of deadlock. For this we salute metalworkers." Jim also advocated a national minimum wage in order to assure a living wage for all workers.

Workers have until Thursday this week to return to work WITH Bell Equipment Ltd. (BEL) and General Motors employees announcing they will resume work Tuesday and Wednesday respectively.

National Employer's Assosciation of South Africa (NEASE) opposes the increase claiming that it cannot take on the extra costs. The NEASA represents approximately 3,000 employees across metal sectors.

The strike paused car production as well as the construction of new power plants in the country. According to employers, the strike cost US$ 28 million per day, impacting production at approximately 12,000 companies including businesses.

This strike came at the heels of a five month mining strike, marking the longest and costliest strike in South African history. African National Congress (ANC) Secretary General Gwede Mantashe indicated that the government may establish legal measures to limit the amount of time for strikes. Mantashe explained, "It is necessary that a debate must ensure in society on how collectively we find a lasting solution to strikes that last too long."

Initially metalworkers demanded a 12 percent salary increase, a US$94.45 housing allowance along with a total ban on labor brokers. However on July 13, NUMSA clarified that the union had lowered its demands to only a 10 percent wage increase.

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