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A MUST READ (Part 4): Why the so-called "consolidated main agreement" should not be extended to non-parties - 90% of employers in the Steel Industry.

Sep 20, 2022

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Dear Steel Industry employer
 
What follows is another letter by a Steel Industry employer to the Minister of Employment and Labour.
 
Regards


Letter by employer

Dear Sir,
 

We are a manufacturing company employing just over one hundred people and exporting our products worldwide.

 We already face stiff competition both locally and on the overseas market but we strive to produce a premium product which is internationally recognised. However due to the recent pandemic these markets are struggling to recover. We are endeavouring to keep our mark ups minimal but with ever increasing prices on aluminium, plastics and various cornponents needed, together with fuel increases, load shedding and running a generator, it is becoming extremely difficult to remain viable.

We have spent considerable time and energy training our staff to a competent level but should the minimum wage of R78.00 cost to company, be enforced for entry level workers, read UNSKlLLED, we will be forced to close our doors and have our products made elsewhere to remain competitive.

There are numerous countries where the wage rates are more affordable.

The Engineering industry already has the highest rates in the country and smaller companies such as ours should not be placed in the same category as the larger capital intensive manufacturers, such as the motor industry.

We already have one of the highest rate of unemployment in the world, SEIFSA and NUMSA should be trying to create jobs, but they are not interested in the wellbeing of either SMME’s, or the workers for that matter, and instead of creating employment they are killing it. We not only will have to retrench our loyal staff, some of whom have been employed for twenty years or more but it also means their dependants, possibly three hundred persons will also suffer and the number of unemployed will increase.

Look what happened to the once great textile industry in this country. Are all smaller companies in the steel industry in South Africa going to go the same way.

Having to apply for an exemption is not an option. The Minister of Labour should give this matter due diligence and we hope that reason prevails.


For more information:
NEASA Media Department
media@neasa.co.za 

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