Numsa welcomes sector bargaining

Numsa's general secretary, Irvin Jim. File picture: Nokuthula Mbatha

Numsa's general secretary, Irvin Jim. File picture: Nokuthula Mbatha

Published Oct 12, 2016

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Johannesburg - The National Union of Metalworkers of South Africa (Numsa) is amenable to the introduction of a fuel sector bargaining model, according to general secretary Irvin Jim.

Bargaining at sector level could, among others, result in a quick turnaround in wage negotiations. For instance, while unions and employers in the automotive industry are still locked in wage negotiations, Numsa has already agreed on a wage increase with the Fuel Retailers Association (FRA), the largest employer body within the fuel sector.

“We are amenable to (sector bargaining). There is no need to lump together different sectors. We are not opposed to sector bargaining,” Jim said.

He said Numsa and FRA met officials of the Department of Labour on Monday. Numsa and FRA want Minister of Labour, Mildred Oliphant, to sign an agreement between the two parties and extend it to the rest of the fuel sector.

FRA chief executive Reggie Sibiya said this week that the body had offered a 9 percent increase for forecourt attendants in year one and 8 percent increases in the two subsequent years. He said the difference between the 9 percent offer and the Motor Retail Industry’s (RMI) 7 percent was R20 a week.

The forecourt attendants' increase was fully subsidised by the government through the retail margin, which covers the retailer’s operating costs.

FRA, which has more than 2 000 members in the fuel sector, has offered 7.5 percent for cashiers and 7 percent increases in the two subsequent years.

Sibiya said the current bargaining model did not suit the fuel sector. “This one size fits all approach is not working for us. For instance, we are a regulated sector. The government subsidises a portion of our costs.

“The motor industry bargaining model undermines completely the diversity within sectors falling under it. This is not a sustainable model long-term,” Sibiya said.

Approximately 80 000 employees in the fuel sector were supposed to get increases at the beginning of September.

Sibiya said some fuel retailers were under pressure from their employees. “This delay is now also costing dearly on those employers who want to maintain working relations with their employees,” he said.

The government normally adjusts the retail margin to cater for wage increases.

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