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Metals wage deal hinges on two conditions

Cape Town – The National Union of Metalworkers (Numsa) is wary of being tied into the three-year wages and conditions deal that the Steel and Engineering Industries Federation (Seifsa) is demanding. However, the union is prepared to concede on the term of the deal, provided two conditions are met.

According to sources within the negotiations, the union indicated that it would be prepared to accept a three year deal, if there was a 1% increment each year from 10% in the first year. This would mean a 12% increase in 2016.

Seifsa proposed 10% this year, with a decline of 0.5% a year to 9% in 2016.

There seemed to be a breakthrough when Numsa agreed to a flat, 10% increase for each of the three years, but with the proviso that negotiations could still be opened over the next two years in the case of any serious changes in economic circumstances.

Seifsa seems agreeable to the percentage increase proposal, but wants there to be no negotiations in the three years on anything that would mean an “on-cost” to companies.

Source – News24