Motor sector strike looms

File picture: Thomas Peter

File picture: Thomas Peter

Published Jul 20, 2016

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Johannesburg - A strike in the retail motor industry has moved a step closer after the failure of a resolution dispute meeting.

Read also: Retail motor industry wage talks move too slowly

Jakkie Olivier, the chief executive of the Retail Motor Industry Organisation (RMI), which represents 19 000 businesses that collectively employ 300 000 people, confirmed on Monday that the dispute remained unresolved after a dispute meeting held last week with the National Union of Metalworkers of SA (Numsa).

Olivier said neither of the parties made any movement on that day on the core issues that led to the dispute.

These issues are Numsa’s demand for a mega bargaining council, comprising the vehicle manufacturers, oil refineries and retail motor industry, and a one-year rather than a three-year agreement.

Bargaining

However, Olivier said the parties agreed to mediation of the dispute by the Commission for Conciliation, Mediation and Arbitration (CCMA), with two sessions confirmed for next month.

Olivier said the logical next step if the mediator came to the conclusion that there was no chance of resolving the dispute was to issue a certificate of non-resolution. This would allow Numsa to give employers 48 hours notice of strike action.

But Olivier was still optimistic the dispute could be resolved without strike action, stressing the time available before the mediation would provide the parties with sufficient time to consult with their members on these critical issues.

“From my experience, mediation provides a better possibility to find a solution and that a solution is possible,” he said.

“Hopefully we will be in a position to convince Numsa that a one-year agreement with national negotiations is not good for our industry and the economy and show them the difference between the business model of our members and big listed companies and that we simply cannot be in the same forum as we have different objectives.

“Obviously if we can get beyond these two issues, which will be in the interests of both workers and businesses, the rest of the demands and proposals on the table will be easier to negotiate.

“These two issues meant making any progress was not possible as long as the two parties stuck to their positions. But there’s plenty of time and everyone is taking stock.”

Numsa’s demands also include a 20 percent wage increase, a R5 000 a month housing allowance and medical benefits to be paid on the basis of 80 percent by employers, 20 percent by employees. Attempts to obtain comment from Numsa were unsuccessful.

The dispute meeting followed Numsa’s decision at the end of June to declare a dispute in negotiations for a new agreement for the industry.

The negotiations involve three employer organisation in the RMI, Fuel Retailers Association (FRA), National Employers Association of SA (Neasa) and two unions, Numsa and Motor Industry Staff Association (Misa).

The current agreement expires on August 31 and covers a number of sectors, including automotive component manufacturers, vehicle body builders, service and repair workshops, fuel service stations, vehicle dealers and automotive parts and accessories retailers.

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