The National Union of Metalworkers of South Africa is demanding a 10% across the board increase from ArcelorMittal SA.
ArcelorMittal SA has applied for an interdict preventing some employees in charge of maintenance at its operations from participating in a strike by the National Union of Metalworkers of South Africa (Numsa), it said on Wednesday. Numsa served the steelmaker with 48 hours’ notice of a strike on Monday, saying it would embark on industrial action and pickets. ArcelorMittal SA is the largest steel producer on the continent, supplying some 60% of the steel used in South Africa. Wage talks at the Metals and Engineering Industry Bargaining Council (MEIBC) were deadlocked when Numsa demanded a 10% increase across the board. ArcelorMittal SA, for its part, made a final offer of 5% across the board and a 2% cash equivalent based on remuneration, adding up to 7%. In a notice to shareholders on Wednesday, the company said it had tried to avert a strike at MEIBC’s centre for dispute resolution without success. “The company has also applied for an interdict to prevent certain employees from striking on the basis that they are involved in providing a maintenance service as contemplated in the Labour Relations Act,” the shareholder notice said.
ArcelorMittal South Africa CEO Kobus Verster said in a statement that the company made the final offer of 7% at the bargaining council last week on Thursday.”The timing of the strike notice suggests that the company’s revised offer has not been shared with Numsa members by the union, which is disappointing. We believe the company’s offer is fair and takes into account both the current economic conditions and the future sustainability of the business,” said Verster.READ | Strike may start at ArcelorMittal this week as Numsa issues noticeVerster said the company’s offer was higher than the average of 5.5% increases in the rest of the steel sector. “Numsa disputes this fact but has to date not presented any factual evidence to the contrary,” the ArcelorMittal SA statement said.”The company is concerned that unsustainable increases in base pay will lead to cost pressures which will weaken our competitiveness. Our industry remains very cost-sensitive, challenging and volatile. To survive and be sustainable, we need to ensure that our cost base remains competitive so that we can manage through the downturns,” Verster said.Numsa said in a statement that it rejected the offer from management as ArcelorMittal made a profit of more than R37 million in 2020. “The last time it performed this well, according to media reports, was in 2008 and at the same time, ArcelorMittal globally has recorded $14.9 billion profit. ArcelorMittal is making obscene profits because of workers, and they are responding by offering peanuts,” the statement said.The statement said Numsa’s strike would continue indefinitely, and that pickets would also continue in KwaZulu Natal and, Vereeniging and Pretoria.Get the biggest business stories emailed to you every weekday.Go to the Fin24 front page.
ArcelorMittal South Africa CEO Kobus Verster said in a statement that the company made the final offer of 7% at the bargaining council last week on Thursday.”The timing of the strike notice suggests that the company’s revised offer has not been shared with Numsa members by the union, which is disappointing. We believe the company’s offer is fair and takes into account both the current economic conditions and the future sustainability of the business,” said Verster.READ | Strike may start at ArcelorMittal this week as Numsa issues noticeVerster said the company’s offer was higher than the average of 5.5% increases in the rest of the steel sector. “Numsa disputes this fact but has to date not presented any factual evidence to the contrary,” the ArcelorMittal SA statement said.”The company is concerned that unsustainable increases in base pay will lead to cost pressures which will weaken our competitiveness. Our industry remains very cost-sensitive, challenging and volatile. To survive and be sustainable, we need to ensure that our cost base remains competitive so that we can manage through the downturns,” Verster said.Numsa said in a statement that it rejected the offer from management as ArcelorMittal made a profit of more than R37 million in 2020. “The last time it performed this well, according to media reports, was in 2008 and at the same time, ArcelorMittal globally has recorded $14.9 billion profit. ArcelorMittal is making obscene profits because of workers, and they are responding by offering peanuts,” the statement said.The statement said Numsa’s strike would continue indefinitely, and that pickets would also continue in KwaZulu Natal and, Vereeniging and Pretoria.Get the biggest business stories emailed to you every weekday.Go to the Fin24 front page.
