POLITICS

MEIBC misleading employers - NEASA

Gerhard Papenfus says wage agreement can't be made to apply retrospectively to non-parties

METAL COUNCIL ACCUSED OF PURPOSEFULLY MISLEADING EMPLOYERS

The National Employer's Association of South Africa (NEASA) has accused the Metal and Engineering Industries Bargaining Council (MEIBC) of purposefully misleading employers and ignoring a legal opinion, after it came to light that the Council had sent out a circular to non-parties last week, informing them of the agreement between employer and trade union parties which will apply to them retrospectively with effect 1 July 2011.

According to NEASA Chief Executive Officer, Gerhard Papenfus, the MEIBC sent out their circular to employers whilst they were in possession of an opinion by the Chief State Law Advisor in which it was clearly stated that the Minister of Labour, Mildred Oliphant, could not extend an agreement retrospectively to non-parties.

"We are shocked and outraged at the Council's blatant disregard for this opinion and their efforts to put undue pressure on the Minister," Papenfus says. He accuses the signatories of the agreement of "lobbying" the Minister to retrospectively extent the agreement, despite being in possession of the Chief State Law Advisor's opinion that there was no basis in law to do so.

"Contrary to the MEIBC's misleading claims, the agreement of 18 July is only an agreement between SEIFSA and unions and it has no bearing on non-party members until it has been extended by the Minister of Labour to non-parties. NEASA and its members are non-parties to this agreement in light of our refusal to sign the agreement on the grounds that our demand for a lower entry grade was completely ignored and the fact that we had earlier declared a dispute against the MEIBC regarding constitutional matters", he says.

Because the outcome of this legal action may have a direct impact on the validity of the agreement, NEASA requested the MEIBC not to appeal to the Minister of Labour to extend the agreement, until such time as the legal process has been finalized. They have also requested the Minister directly not to consider the extension until clarity with regards to the Council's constitutionality has been obtained. "It is our view that the legal process has to run its course before the agreement can be extended to non-parties by promulgating it in the Government Gazette", Papenfus explains.

NEASA claims it has records that the MEIBC circulated the Legal opinion of the Chief State Law Advisor to the signatories of the latest agreement on the 28th June 2011, but intentionally excluded NEASA from the communication. "This was a deliberate decision taken by the Council to send out the circular, thereby misleading employers and especially non-signatories to this agreement, notwithstanding the information they had in their possession", Papenfus says.

** The MEIBC was given the opportunity to rectify their communication to employers before this press release, but refused to do so.

Statement issued by Gerhard Papenfus, CEO: NEASA, July 25 2011

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