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After failing wage negotiations with employers’ organizations, South Africa’s largest metal workers’ union called for an indefinite strike.
According to industry and union officials, South Africa’s largest metal workers’ union has launched an indefinite strike, seeking a raise and threatening to block the supply of parts to make new cars and accessories.
The industry has about 155,000 members. The National Metal Workers’ Union of South Africa (NUMSA) on Tuesday called for a complete shutdown of the engineering industry after wage negotiations with employers’ organizations were deadlocked and arbitration failed.
NUMSA said in a statement: “We have no choice but to strike and detain our labor force indefinitely until the boss meets our justice requirements.”
The union organized marches and rallies across the country on Tuesday. Thousands of people took part in the march in downtown Johannesburg. Protesters wearing NUMSA’s iconic red held placards that included “to hurt one person is to hurt everyone” .
NUMSA sought to increase wages by 8% across the board in the first year of the compensation agreement, and to increase wages by the equivalent of inflation plus 2% in the next two years. The current annual inflation rate is about 5%.
The Southern African Iron and Steel and Engineering Industry Federation provides an interest rate of 4.4% for 2021, an increase of 0.5% for 2022, and an increase of 1% for the third year.
Members of NUMSA marched during the indefinite strike in Johannesburg on Tuesday [Siphiwe Sibeko/Reuters]COVID’s economic blow
South Africa’s economy, including its export-focused automotive industry, has been hit hard by the COVID-19 pandemic, making employers reluctant to give in to trade unions’ higher-than-inflation wage increases.
Last year, car sales in the domestic and export markets fell by about 30%, which had an impact on major brands such as Ford, BMW and Nissan, all of which have local factories.
“We urge all parties to quickly resolve the deadlock and prevent long-term damage and possible production line shutdowns for vehicles assembled in South Africa and abroad,” Renai Moothilal, executive director of the National Association of Auto Parts and Related Manufacturers, told Reuters. .
Mark Roberts, the main convener of the Retail Automobile Industry Association, said that if the NUMSA strike continues for more than a week, supply may be affected.
In addition, the country’s largest trade union federation called on its members not to go to work on Thursday.
COSATU is aligned with the ruling African National Congress Party, but is sometimes critical of its policies, accusing the government of poor economic management during the coronavirus crisis.
It hopes to force policymakers to adopt a more accommodative fiscal stance in next month’s mid-term budget.
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