Deadlock in MIBCO and Numsa wage negotiations

Irvin Jim, the general secretary of the National Union of Metalworkers of South Africa (Numsa), says the failure of engagements at the start of August with the employers in the motor sector, including the Retail Motor Industry Organisation (RMI) and the Fuel Retailers Association (FRA), means “we are at the point where we are forced to declare a deadlock”.

The motor sector employs more than 300 000 workers nationally, including employees in vehicle dealerships, petrol stations and automotive component manufacturing companies.

Numsa previously declared a dispute in its engagements with employers over a new wage agreement.

Mediation between unions and employers under the auspices of the Motor Industry Bargaining Council (MIBCO) dispute resolution committee (DRC) failed to resolve the dispute, resulting in Numsa declaring a deadlock in negotiations.

Jim said Numsa will be organising National Shop Stewards Council meetings in the coming weeks with its members to mobilise them and wait for a date from the Commission for Conciliation, Mediation and Arbitration (CCMA) for conciliation to deal with picketing rules.

“We are at the mercy of the CCMA and employers. The ball is in their court. They have the power to stop the looming national strike in the motor sector if they put a meaningful offer on the table.

“We are always ready to talk and there is still time to avert a strike,” he said.

Jacques Viljoen, chief negotiator for the RMI, said much time was spent until recently to identify core non-wage demands from the trade unions.

Viljoen said these core non-wage demands have now been dealt with, and the RMI tabled a wage offer to Numsa at the start of August, which is aligned to inflation forecasts for the intended three-year period of the collective agreement.

“Progress is anticipated to increase over the next few weeks in the hope that a new wage and substantive agreement is published by the Department of Employment and Labour as soon as possible after 31 August, when all the current collective agreements expire,” he said.

The mediation failed after the FRA tabled an offer, which Numsa indicated it could not accept.

Jim said the FRA offered a 4% across-the-board wage increase for all service station forecourt attendants, with a 3% increase for cleaners and cashiers, in each year of a three-year agreement.

Numsa’s demands include a 12% across the board wage increase; a night shift and transport allowance for garage workers; amendments to be made to the peace clause to allow Numsa to raise issues in the workplace that are not covered by the MIBCO collective agreement; and social benefits, such as medical aid, for garage workers.

The demands by the Motor Industry Staff Association (Misa), the other union involved in the MIBCO negotiations, include a minimum wage increase of 9.5%; an amendment to the short-time clause; and a review of the calculation of retrenchment pay and accrued leave pay.

Misa claims it represents 55 712 employees in the motor sector, including administrative staff in vehicle dealerships, workshop employees such as technicians and mechanics, and fuel attendants.

Numsa claims to represent at least 90 000 of the more than 300 000 workers in the motor sector.

However, the RMI claims that audited membership numbers showed that Numsa represents only 18% or 57 000 employees in the motor sector.

Viljoen said the industrial action threatened by Numsa could pose a serious challenge to the recovery of the motor sector following the recent national state of disaster and the unrest last year.