NEASA CAUTIONS EMPLOYERS NOT TO IMPLEMENT METAL INDUSTRY AGREEMENT

The National Employers Association of South Africa (NEASA) is urging its members and other non-parties not to implement the agreement that has been reached between unions and SEIFSA yesterday.

According to NEASA Chief Executive Officer Gerhard Papenfus, the employer's organisation regards the accord as a party agreement that is only applicable to members affiliated to SEIFSA, and that it should not be forced down upon non-party members of the Bargaining Council.

"NEASA will not sign this agreement and as such we and our members are currently non-parties to this agreement. We are therefore not bound by the agreement," Papenfus said, adding that this agreement will only become an industry agreement once the Minister of Labour, Mildred Oliphant, has extended the agreement to non-parties and such an extension is promulgated in the Government Gazette.

"We have already given an ultimatum to the Metal and Engineering Industries Bargaining Council (MEIBC), not to forward this agreement to the Minister for extension to non-parties. NEASA has declared a dispute against the MEIBC regarding constitutional matters and the outcome of that legal action will have a direct impact on the validity of this agreement", Papenfus explained.

Furthermore, NEASA claims that the other unions who signed the agreement, simply fell into NUMSA's slipstream. "This so-called agreement was negotiated behind NEASA's back, effectively turning a deaf ear to the single largest employers' organisation in the Council," Papenfus says.

SEIFSA represents less than 25 % of employers in the industry and NUMSA only represents 30 % of employers of the Industry. "SEIFSA and NUMSA not only blatantly ignored the demands of the biggest employer's association, but also excluded the other unions from the vital negotiations. This habit of NUMSA and SEIFSA to exclude other role players from negotiations seriously undermines the principles of orderly collective bargaining. They cannot possibly claim to represent the Industry," Papenfus said.

NEASA had entered the negotiations with amongst others, demand for a 50 % lower entry grade for new employees than the current entry grade salary. This demand was completely ignored in the agreement.

"In order to be able to create more work and employment opportunities, we simply have to lower the entry grade for new employees. It is outrageous to imagine that businesses will be able to afford to pay a total cost to company amount of R6 400 per month to employ a completely unschooled worker off the street. Businesses cannot afford the environment created by this proposed agreement which will only end up excluding thousands of South Africans from the main stream labour market. Our competitors in India, China and even our neighbouring states, are the only ones who will benefit from the agreement, because they will in future be manufacturing the products which, through high costs, we won't be able to manufacture anymore", Papenfus warned.

"NEASA is warning non-party employers not to blindly pay this higher wages, but to wait until the legal process has run its course", Papenfus concludes.

Statement issued by Gerhard Papenfus, CEO NEASA, July 19 2011

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