Arcelor Mittal steel foundry. Photo: Arcelor.

Johannesburg - Trade union Solidarity and steel giant ArcelorMittal have reached a wage agreement, the union said on Wednesday.

“The agreement, that is retroactive to April 1 and will be in effect until March 31, 2015, includes a salary increase of seven percent and various favourable changes to employees’ conditions of service,” said union spokesman Marius Croucamp.

He said the agreement, signed earlier this month, also applied to members of the National Union of Metalworkers of SA.

“Solidarity and its members are satisfied with the positive note on which the negotiations ended. We are also intensely aware of the challenges confronting the metal industry.”

He said various allowances of employees in the bargaining unit would be increased by seven percent, in accordance with their salaries.

Conditions of service were revised and several favourable changes were agreed to.

“As part of these changes, employees who are on standby on public holidays will receive a non-compulsory day of leave, whether they are called out on the days in question or not.”

The company could not immediately be reached for comment. - Sapa