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Tough negotiations are looming in the motor manufacturing sector over a new collective wage agreement, with the National Union of Metalworkers of SA (Numsa) demanding a 20 percent across-the-board increase.
There is also a wide gap between the opening demands of Numsa and the offers of automotive component manufacturers and retail motor industry employers, who are subject to collective agreements struck at the motor industry bargaining council (Mibco).
Mphumzi Maqungo, Numsa’s national treasurer, confirmed yesterday that the union was demanding a 20 percent across-the-board wage increase for motor manufacturing workers, a one-year agreement and a R3.20 an hour raise for team leaders to correct anomalies in the industry following the unilateral decision by Toyota South Africa in 2010 to grant its team leaders a R3.20 an hour increase.
Thapelo Molapo, the chairman of and chief negotiator for the Automobile Manufacturers Employee Organisation (Ameo), was unavailable for comment.
But Maqungo said Ameo was offering a five-year agreement, inflation-linked wage increases and the revoking of clauses in the existing agreement related to double pay for Sunday work.
He said the first round of negotiations with Ameo was scheduled to take place on May 28 and 29.
“Numsa has got an approach and they are going to be tough negotiations. Both parties need to be objective and apply their minds because if no agreement is reached, workers will have no choice but to go to the streets,” he said.
The existing three-year agreement, which resulted in a 10 percent increase in the first year and a 9 percent increase in the second and third years, expires at the end of June. It was struck in 2010 after an eight-day strike that resulted in the loss of production of about 17 000 vehicles and the loss to employees of R64 million in wages and benefits.
Maqungo said Numsa had filed its demands at Mibco, which included an industry minimum wage of at least R6 000 a month for first-time employees and a R30 an hour increase for workers currently earning more than R6 000 a month.
He said Numsa was also demanding a 100 percent transport allowance for workers who finished work after 6pm, the banning of labour brokers and a one-year agreement.
Jeff Osborne, the chief executive of the Retail Motor Industry Organisation (RMI), said the three-year agreement with Numsa expired at the end of August.
Osborne declined to comment on Numsa’s exact wage demands but described them as “excessive, double-digit and out of kilter with the CPI [consumer price index]”.
He said employers had offered a single-digit wage increase that was more aligned with the CPI and favoured a three-year agreement to bring predictability and stability to the industry.
Osborne said formal negotiations over a new agreement would begin in July and employers were entering the negotiations in a spirit of utmost good faith and were mindful of the importance of a motivated and stable labour force.
“We are hoping that there will not be any undue disruption to the industry,” Osborne said.
Meanwhile, Numsa also said yesterday that it would demand a 20 percent across-the-board wage increase and a R12 500 a month minimum wage for workers at power utility Eskom.
The union is also demanding all workers on minimum wages in each salary grade be moved to the maximum wage in their grade from July, free solar geysers for all Eskom employees, a R600 a month electricity allowance, a 25 percent annual performance bonus incentive and housing, transport, shift and “stand-by” allowances and extended leave.
Eskom is expected to respond to Numsa’s demands next week.
Additional reporting by Londiwe Buthelezi