A MUST READ (Part 15): 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 CONCERNS
 
HEREWITH PLEASE RECEIVE MY COMMENTS AND OBJECTION to the extension of the Seifsa/Numsa Main Agreement to all non-parties in the Industry.

1. WE ARE A SME HISTORICALLY LOCKED INTO A ‘GAME OF POKER’ BY BIG INDUSTRIAL ROLE PLAYERS i.e., MERCESE BENZE SELLING at R100 000’S vs OUR ITEMS SELLING at between R12 – R80.  WE JUST DO NOT HAVE THE VOLUMES/MARGINS/TURNOVER TO BE PUT INTO THIS GROUP
2. 50%+ INCREASE IN MATERIAL COSTS IN THE PAST 18 months – EXCLUDING DRASTIC INCREASES IN THE PAST 5 YEARS
3. 40% + INCREASE IN FREIGHT COSTS IN THE PAST 18 months – EXCLUDING DRASTIC INCREASES IN THE PAST 5 YEARS
4. ELECTRICITY INCREASES & POWER OUTAGES
5. POST COVID VOLUMES – 70% down
6. CHINESE HAVE PUSHED PRICES TO BELOW OUR COST – WE COULD COMPETE GLOBALLY 10 YEARS AGO, BUT RSA CAN NOT COMPETE ANYMORE
7. NO PROFIT PAST 5 YEARS DUE TO pts 1, 2, 3, 4
8. WAGE INCREASES WILL PUT US OUT OF BUSINESS
9. UNSKILLED LABOUR
10. LABOUR INTENSIVE
11. MECHANISATION IS EXPENSIVE & COUNTER-PRODUCTIVE RESULTING IN JOB LOSSES
12. 10 YRS AGO WE EMPLOYED 150 – 200 EMPLOYEES. CURRENTLY, EMPLOY 50 – 70
13. THERE IS NO MARGIN FOR MISTAKES, STOPPAGES, OR COST INCREASES. EACH EMPLOYEE IS WORKING FOR THEIR, AND THE COMPANIES SURVIVAL.

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