153 Bree Street (Cnr. Becker) P.O. Box Tel: (011) Fax: (011)

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1 NATIONAL UNION OF METALWORKERS OF SOUTH AFRICA 153 Bree Street (Cnr. Becker) P.O. Box Newtown, Johannesburg EXCOM Tel: (011) Fax: (011) OCCB Engineering Sector Co-ordinator TO : ALL REGIONS ATT : REGIONAL ORGANISERS REGIONAL ADMINISTRATORS Comrades Please find below status of the Engineering Wage Negotiation which we hope it will assist in your general meetings report backs. Comrades if you need clarities please ask your bargaining representatives (see the attached list) or call us at the H/O. And we urge Regions to start making arrangements for the strike e.g. Establishing Strike Committees Prepare for the march on the 01 July Discuss any possibilities drawing from previous strikes. Discuss of how are you going to inform communities, state organs, financial institutions etc NOTICE OF A DISPUTE ON WAGES AND OTHER SUBSTANTIVE ISSUES WAGE NEGOTIATIONS 2014 The dispute referral has been served to the following Parties: SEIFSA representing their Twenty six (26) Employer Associations National Employers Association of SA (NEASA) Federated Employers Organisation of SA (FEOSA) Plastic Converters Association of SA SAUEO CEASAR Border Industry Association SUMMARY 1

2 DEMANDS EMPLOYER S RESPONSE NUMSA DEMANDS Wages CPI for the month of April 2014 is 6.1% Reduction of 50% on all existing minimum scheduled wage rates must be introduced and applied to all new entrants Total cost to employment basis with no other substantive change to employment conditions. No Back dating and agreement applicable on the date of signature. Prepared to look at reviewing and/or varying terms and conditions of employment contained in the Main Agreement in exchange for increasing the wage offer - provided the total cost of employment does not exceed CPI NEASA (6.1%) on condition parties agree on their exemption amendment. Border Association (Align with SEIFSA) on condition we agree with their proposal of a regional dispensation We demanded 15% across the board and no condition and no to cost to employment. Further no to regional dispensation. Exemption to be dealt at the IPF Main Agreement Challenges. Duration of the Agreement Scope of the agreement Labour Brokers 3 year multi-year agreement must be concluded and apply CPI as at April in Year 2 & 3.(i.e.2015 & 2016) ( Border Association agreed on one (1) year agreement subject to Border dispensation addressed) Refer to process issues to be dealt by MEIBC Stanco same as Scrap Metal was addressed. But to not agree to construction and mining. Status quo 2 One year agreement effective 01 st July 2014 to 30 th June Extend the scope of the council to include Scrap Metals, Mining and Construction. Total ban or abolish labour brokers in the industry.

3 Short Time Status quo Short time must not affect workers shifts iro leave enhancement. After 6 weeks of short time, there must be negotiations on short time and employer must be forced to provide training through MERSETA and many other solutions to end short time must be determined We must replace consultation during short time and engage on negotiations. Short time should not exceed the minimum hours of 36 per week. The Industry must establish a fund that will cater for short time. Shift Allowance Status quo Morning shift -10%, Afternoon shift -15%, Night shift -25% Transport must be paid by the company. Housing Allowance No (Rejected) Housing allowance of not less than R2500 per month payable to each worker in the industry Training and Career Path No (Rejected) except that Allow Merseta processes in terms of Apprentices where all parties are represented. Introduce a ratio for apprentice e.g. for every five apprentices employ one artisan. Guarantee all apprentices employment 3

4 Sick Leave / IOD / Illness/ Sick Pay Fund No (Rejected) Rules must be dealt by the Board of the Sick Pay Fund and just set up terms of reference. Refer IOD & Disability to Stanco 100 % payment for training. Current employees must not be expected to resign from employment if they take apprenticeship. Training should not be limited to certain courses 15 days per annum and it must accumulate over a period of three years if it is not utilised. IOD should be paid 100% by the employer and the employer will claim from the Compensation fund. One day paid leave medical check-up. Employer to top up the 75% Realign the agreement on maternity leave to sick pay fund. Limitation to the number of pregnancies should be removed. Maternity Leave It must be dealt with at the Stanco. Realign with Sick Pay Fund Rules Shifts must not be affected for taking maternity leave. Family Responsibility Leave Status Quo 5 days per occurrence without any exception. 4 Accumulative clause must be applicable on all events Extend the definition of family in relation to compassionate and sick leave to cover parents. Shifts must not be affected. Annual Leave Status quo We demand a minimum of 20 days leave per annum

5 Leave Enhancement Pay Shopstewards Recognition and Time off NEASA - No position SEIFSA Status quo note employer demand It must be dealt with at plant level Section 37 does not prevent this matter being improved further at plant level Improvements must be pursued at plant level Increase LEP from 8.33% to15% We demand a minimum of 30 days for shop stewards. Shop stewards should not lose shifts for the leave granted for union activities and training. Amend the Section 44, 46 & 47 of the Main Agreement (reasonable to be changed to unlimited time-off ) Youth Wage Subsidy It is governed by law. Status quo No company in our industry should be allowed to implement Employment Tax Incentive Production Bonus Status quo Clause 40 Annexure D must be amended to replace the word may by shall. Production bonus should be compulsory because there are some employers who are not willing to pay a voluntary production bonus at company level Severance Pay Status quo We demand 4 weeks pay for each year of service. Ex-Gratia Payment Status quo For 5 to 10 years of service they must get 3 weeks payment. For 11 to 15 years of service they must get 4 weeks payment. 16 years of service and above they must get 5 weeks of payment Load Shedding Payment Status quo Workers must be paid 8 hours during load shedding, inclement weather and 5

6 Exemptions SEIFSA Exemptions are currently being dealt with at the IPF Main Agreement Challenges process See different demands from NEASA. unforeseen circumstances not 4 hours as stipulated in the main agreement. We must amend the current exemption policy and incorporate it to the Main Agreement (Must be dealt with at the IPF Main Agreement Challenges) VUSUMZI MABHO National Engineering Sector Coordinator Copy: Secretariat HOD 6