Following an unsuccessful a court challenge from the National Employers Association of South Africa (Neasa) and the South African Engineers and Founders Association (Saefa), Minister of Employment and Labour Thulas Nxesi has gazetted the extension of a steel wage deal to all employers within its scope of application.
The two employer associations took the Metal and Engineering Bargaining Council (Meibc) to the Labour Court in August to prevent it from extending the "unaffordable" wage deal.
The wage deal in question is a 6% increase to the minimum rate in the metals and engineering sector. The main agreement becomes legally binding on all non-party employers from next week Monday.
Neasa and Saefa also maintained that the Plastic Converters Association of South Africa (PCASA) asked to vote on the matter at a Meibc meeting, despite not being an employer in the sector.
However, in September, the Labour Court dismissed their urgent application to halt the extension wage deal to their members. The association has vowed to keep fighting to stop the extension through the courts.
The Steel and Engineering Industries Federation of Southern Africa (Seifsa), a supporter of the extension, has welcomed its publication in the government gazette.
Seifsa CEO Lucio Trentini said in a statement that while the federation was relieved that the deal's extension was gazetted, he expected Neasa and Saefa to continue seeking legal avenues to stop the extension.
"After many rounds of litigation, the fact remains we have an agreement covering terms and conditions of employment, supported by the overwhelming majority of employees who are members of the trade unions and the overwhelming majority of factory workers employed by employers who are members of one or other employer organisations represented on the council. I have no doubt, however, that legal challenges will continue all the way to the Constitutional Court," said Trentini.
Trentini said the agreement was supported of five of the biggest trade unions in the industry, including the National Union of Metalworkers of South Africa and 18 independent employer organisations.
"Whilst we acknowledge the right of our detractors to continue in their quest to have the agreement declared a nullity, our critics would be best advised to do some introspection and ask themselves what have they been doing for the last twenty years, participating on a forum that is designed and created to support centralised collective bargaining," he said.
Neasa CEO Gerhardus Papenfus referred to the legal battle as "a 15-round match".
"We are not at all surprised. The minister has never illustrated an understanding of what is happening in this industry and he has done what we expect him to do. I have no doubt that the judge is wrong and the minister hasn't given any regard to our submission or those of employers," said Papenfus.
Papenfus said some employers in the sector are paying employees R30 an hour and will have to double that rate in a very short period. He said Neasa will approach the courts and rally the support of thousands of businesses who cannot afford the extension.