MEIBC'S REPONSE TO NEASA'S CLAIMS ABOUT THE INDUSTRY AGREEMENT

The Metal and Engineering Industries Bargaining Council (MEIBC) places on record its response to the National Employers' Association of South Africa's (NEASA's) inaccurate claims concerning various issues relating to the MEIBC which have recently been extensively reported in the media.

NEASA's representivity within the MEIBC

In accordance with the Labour Relations Act, the MEIBC conducts an annual audit of the party employer associations and party trade unions to the council as well as the total workforce employed in terms of the council's scope. The audit forms the basis upon which the Department of Labour decides each year whether or not to issue a certificate of representativeness to the council.  The MEIBC was recently duly issued with a certificate confirming its representivity.

NEASA incorrectly claims that it represents the majority of employers in the metal and engineering industries.  In terms of the last audit conducted by the council, NEASA represents about 907 employers in the industry (approximately 10%), while SEIFSA and its 28 affiliated associations represent 2254 employers (approximately 25%).  The majority of employers in the industry do not belong to any employer association, which has been the case historically over the last 65 years.

SEIFSA's member companies currently employ just over 53% of the workforce falling under the scope of the council, while NEASA's members employ only 7% of the workforce.  The total number of workers employed in the metal and engineering industry is approximately 320 000.

Conclusion of the industry agreement

The council is satisfied that the collective bargaining process followed is legitimate.

Despite actively participating in the negotiations since they started on 4 May, NEASA has decided not to sign the settlement agreement entered into by the majority of the parties to the MEIBC.  The duly constituted MEIBC Management Committee resolved on 18 July 2011 in favour of the industry agreement and for the extension of the agreement to non-parties.  NEASA and FEOSA were the only two parties who opposed the Settlement Agreement.

The council also conducted a ballot in compliance with its constitution, which yielded a result in favour of the conclusion of the industry agreement and its extension to non-parties.

Application for extending the agreement to non-parties

The MEIBC has complied with its obligations in terms of its constitution and the LRA in applying to the Minister of Labour on 21 July 2011 to extend the industry agreement to non-parties.

The Minister of Labour will exercise her discretion in terms of section 32 of the LRA as to whether the agreement will be extended to non-parties.  We respect the independence of the Honourable Minister and remain confident that she will reach a fair conclusion in this regard.

We deny and take exception to NEASA's claims that the MEIBC or any of its parties have attempted to lobby the Honourable Minister to act improperly.

NEASA's decision to become a non-party to the agreement in no way affects the credibility and legal standing of the industry agreement.  In the interests of fair and sound industrial relations practice, non-party employers are encouraged to implement the wage increases concluded on 18 July 2011 and not to wait until the agreement is extended by the Minister.  Non-party employers will be legally obliged to implement these increases as soon as it is gazetted and extended by the Minister of Labour.

The MEIBC has and will continue to comply with its constitution and any legal requirements to ensure that the industry agreement is properly concluded and extended to non-parties.

NEASA's dispute

On 14 June 2011 NEASA lodged a dispute with the council concerning the application of the MEIBC constitution provisions 5 and 7. The requisite dispute resolution processes have been put into motion to resolve the dispute.

Despite an agreement to pursue the arbitration process between the MEIBC and NEASA, for which a date is being awaited, NEASA continues to make serious allegations in the public domain about the council's administration of the industry negotiations and its observance of its constitution. 

The MEIBC is intent to defend any actions brought by NEASA against the council.

Statement issued by Alistair Smith, MEIBC Chief Executive Officer, July 28 2011

Click here to sign up to receive our free daily headline email newsletter