BRENTWOOD

2021-07-16

Metal and Engineering Industries negotiations update.

SEIFSA tabled its conditional offer on 12 July 2021. The offer includes:

- Duration of the agreement: 1 July 2021 until 30 June 2024.
- Extension of the main agreement to non-parties is still under consideration.
- Wage Increases from 01 July 2021 – 30 June 2022: 4,4%.
- Wage Increases from 01 July 2022 – 30 June 2023: April 2022 CPIX + 0.5%. If the CPIX is below 3%, then 3% will be implemented.  Should it be over 6%, the 6% + 0.5% will be implemented.
- Wage Increases from 01 July 2023 – 30 June 2024: April 2023 CPIX + 1%. If the CPIX is below 3%, then 3% will be implemented across the board.  Should it be over 6%, the 6% + 1% will be implemented.
- Plant level bargaining: None to take place.
- Special Phase-in Dispensation: This is voluntary for members of the SEIFSA affiliated employers organisations: Within 60 days from the settlement of the new Main Agreement employers paying less than the minimum wage must lodge a programme with the Bargaining Council to increase to industry minimum:
o Employers paying at or above 60% of Rate H on the 1 July 2021 shall have 10 years to phase-in to 100% of Rate H.
o Employers who are paying below 60% of Rate H on 1 July 2021 will have 5 years to phase-in to 60% of Rate H and thereafter 10 years to phase-in to 100% of the prevailing Rate H.
o Leave enhancement pay (bonus) and Annual Leave shall be paid in accordance with the Main Agreement but calculated at the rates actually being earned
o All remaining terms and conditions of employment of the Main Agreement, save for the above, including all social security benefit fund arrangements and bargaining council levies shall apply to all party employers on this scheme
with effect from 1 July 2021. Party employers paying below or at and above 60% of Rate H but less than a 100% of Rate H on the 1 July 2021, shall have sixty (60) days to prepare and finalise their phase-in schedules and submit these, together with proof of membership of a party employer organisation, to their local regional bargaining council offices.
- Backdating: As long as negotiations continue in good faith the terms of this agreement would be backdated to 1 July 2021.

NUMSA wants a one-year deal with 15% across the board, based on actual rates of pay.

Solidarity says it will canvas membership but expects complications in the SEIFSA deal for non-SEIFSA employers, and that the 4.4% proposal is based on multiple pay grades, so increases will not apply the same way across the board.

All parties will report back on the offer on 28 July 2021.