Steel Industry in South Africa Stare at Potential Strike

SEATTLE (Scrap Monster): The National Union of Metalworkers of South Africa (NUMSA) has warned the steelmakers in the country of a potential strike action, in case of failure of the ongoing wages negotiations. Incidentally, the South African steel sector is a major contributor to the nation’s economy, generating around R600 billion per year and offering employment to over 2 million workers across large and small companies belonging to the sector.

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The NUMSA representatives have been holding talks with all the three major steel employer organizations- the Steel & Engineering Industries Federation of South Africa, the National Employers Association of South Africa and the South African Engineers and Founders Association. The above organizations represent around 10,000 steel companies operating in the country.

The employer organizations have put forth a proposal to implement 4.5% wage increase for workers, with the exception that struggling steel companies may be allowed to pay even less than the national minimum hourly rate of between R21 and R49.

However, NUMSA demands 8% wage rise across the board. Informal talks are already underway to resolve the crisis. However, the labour union representatives said that the members would be forced to down tools if an agreement is not reached at the earliest.