The Commission of Conciliation Mediation and Arbitration continued to conciliate the wage dispute that NUMSA declared with the employers on 30 August 2019, on 11 October 2019.
During the second day of conciliation, the RMI and the other employer parties responded with an amended settlement proposal in response to a proposal from NUMSA requesting that the wage deal for the past three years (2016-2019) be replicated for the ensuing three years. The RMI and the other employer parties proposed the following increases on wages and non-wage cash components (i.e. stand by, call-out and tool allowances):
Component Manufacturers registered under Chapter III
Year 1: 6% Year 2: 5½% Year 3: 5½%
Rest of Industry (excluding the fuel retail industry)
Year 1: August CPI + 1½% (equal to 5,8%) Year 2: 5½% Year 3: 5½%
Fuel Retail Industry registered under Sector 5
Details to be released under separate cover, in due course.
The RMI’s offer is conditional on NUMSA relinquishing its proposals/demands regarding the introduction of night shift and transport allowances, higher overtime rates for Chapters II and III, and the effective scrapping of the short time provisions in the Main Agreement, and resonates the RMI’s commitment towards ensuring that the wage agreement for the ensuing three years promote business sustainability and profitability, as well as to promote job retention and creation.
NUMSA did not respond to the RMI and other employer parties’ revised proposal on wages and it was agreed that the conciliation process will continue on 23 October 2019, aimed at achieving agreement on wage increases and a number of other related process issues.
Details regarding progress with negotiations in Sector 5 (fuel retail businesses) will be released under separate cover.
The RMI will continue to keep its valued members updated on developments, and would caution against distress about the slow pace of progress. We remain buoyant about the likelihood of a settlement between the parties in due course.