A MUST READ (Part 13): Why the so-called "consolidated main agreement" should not be extended to non-parties - 90% of employers in the Steel Industry.

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: 

To whom it may concern

The Minister needs to urgently consider the following:

• If the agreement is forced onto non-party members of the agreement (mainly SMMEs), we will be required to pay an entry-level wage of R55,67 (plus an on-cost of approximately 40%, which amounts to R78 cost-to-company(R13,500.00)) for an unskilled worker.
• This wage, incidentally, is:
  • 130% higher than the entry-level wage for the Motor Industry at around R5,900.00,
  • 40.6% higher than the Road Freight Industry at around R9,600.00.
• The steel industry has shed more than 500,000 jobs over the years and covid has made it worse.
• It is common knowledge that employment growth comes mainly from SMMEs.
• If we as SMMEs cannot afford the above, one will have to apply for an exemption to an Exemption Committee, which will arbitrarily decide whether your business is ‘insolvent’ enough to qualify for an exemption – there are no criteria, and making provision for the growth of your business is not a consideration.
• A micro-size employer, situated in an outlying town in the Karoo, is expected to pay the same wage as a multinational situated in an economic hub.
• The cost of doing business for an SMME vs a big business is entirely disregarded. 
• The national minimum wage of R23.19 or R4020.00 per month (plus on-costs) is more than 50% lower.
• “Covid relief” is R350.00 per month.
• How does one find the balance between R350.00, R4,020.00, R5,800.00, R9,600.00 and R13,500.00 for an unskilled worker.
• Now to crown this the State President’s plea that entry-level wages must be lowered to address SA’s unemployment crisis is totally ignored by Seifsa, Numsa and now the Minister of Labour.

HOW MANY MORE JOBS STILL NEED TO BE SHED BEFORE WE WAKE UP

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