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MEIBC Non-extension

Mar 22, 2018



Extension NOT imminent

Dear Steel Industry employer

The Management Committee of the MEIBC, on 19 March 2018, adopted the Seifsa collective agreement as an agreement of the Council. Even though NEASA, the PCASA, SAEFA and CEO did not support the resolution, it was supported by the organisations affiliated to Seifsa and all the trade unions. FOR A RESOLUTION OF THIS NATURE TO BE PASSED, A SIMPLE MAJORITY OF THE MANAGEMENT COMMITTEE (MANCO) OF THE COUNCIL IS REQUIRED.

Although Seifsa currently only has 4 out of 21 employer seats on MANCO, it simply requires of them to vote with the trade unions to obtain a simple majority.

Following the outcome of this meeting, Seifsa circulated a newsletter to the Industry which indicated that, now that the agreement has been adopted as an agreement of the Council, it is simply a matter of course for the agreement to be extended to non-parties.

This averment by Seifsa is completely misleading and apparently aimed at deceiving the Industry into believing that extension is a fait accompli – which it is not.

It is important to note that Seifsa, with their 1298 members, enjoy the support of only 12 percent of employers in the Steel Industry. However, with this limited employer support, but with the support of the trade unions, they wish to enforce their Industry hostile agreement, which their own members can’t afford, on SMMEs.


The Labour Relations Act contains specific legal prerequisites which must be complied with before the Council may request the Minister of Labour to extend any agreement. One of these is that the parties to the Council, who employ the majority of the employees employed by all the employer parties to the Council, must vote in favour of such a request.

It is NEASA’s view that Seifsa will find it very difficult to reach this required threshold as NEASA as well a number of other significant role players will not vote in favour of such a request.

Should members have any queries in this regard, please contact our HOTLINE on 086 016 3272.

In the meantime, remember this:

“The important thing in life is not the triumph, but the struggle”
Pierre de Courbertin

Kind regards


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