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A MUST READ (Part 17): Why the so-called "consolidated main agreement" should not be extended to non-parties - 90% of employers in the Steel Industry.

Oct 6, 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: 

We refer to the Consolidated Main Collective Agreement of the Metal and Engineering Industries which has been signed and requested to be extended.

As a member of NEASA it is in our view and opinion an irresponsible move to extend the Agreement to Non-Party Employers of the Agreement.
 
The burdens we as employers are faced within the current economic sphere is growing daily. To only list a few:

  • Labour and / or other unrest and protests disrupting business processes
  • High Inflation Costs (Petrol, Electricity etc)
  • Increase in Interest Rates
  • Cheaper Imported Products
  • More Compliance Regulations resulting in Increased Costs

With the extension of the Consolidated Main Collective Agreement of the Metal and Engineering Industries a further increase in labour cost will just add more detriment to our business operations.

Our labour cost contributes to 85% of our total cost structure, therefore the impact of the increases, minimum wage and other employee costs proposed can not be taken lightly.
 
To ensure a position in the future and contribute to job creation we plea with the Minister not to extend the Consolidated Main Collective Agreement of the Metal and Engineering Industries.

With our business situated in North West and an analysis we did to be market related, we have concluded that the wages proposed is between 45% and 85% to high, varied across the job grades.  
 
We can not sustain the wages proposed and should the Consolidated Main Collective Agreement of the Metal and Engineering Industries be extended it will lead to job losses and / or business closure.
 
It is not our view to exploit any employee employed by us currently nor in future, but we must argue the point that we are allowed to remunerate our employees that are sensible and cross market related.

We have an obligation to make every effort in keeping our business operational and not run the risk of closing.
 
We trust that you will consider our opinion as valued and rather ensure your decision is removing the burdens than increasing them.


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

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