The month-old strike in the metal and engineering sector by more than 200,000 members of the National Union of Metalworkers of South Africa (NUMSA) could be over by this afternoon if its members accept the latest wage offer brokered by Labour Minister Mildred Oliphant, the labour department and the Commission for Conciliation, Mediation, and Arbitration (CCMA). The union lowered its demand from an initial 15% to 12% and then to 10%, but sticking points have been the period to which it should apply – 1 year versus 3 – as well as some of the “political” demands made by the union. When the union and employer body SEIFSA (Steel and Engineering Industries Federation of South Africa) met on Friday, they appeared to agree on a three-year deal, but there was disagreement over a clause SEIFSA wants to include in the agreement relating to the nature and scope of collective bargaining in the sector.

·     What it means:  The clause, which SEIFSA wants to insert as a vital part of a “take it or leave” final offer, could, if accepted, radically alter the power balance in labour relations in the sector. SEIFSA fears that without the clause the unions could now settle for a single sector-wide minimum deal but could come back later at company level to demand more. Although affiliates of the Congress of SA Trade Unions (COSATU) are opposed in principle to a two-tier system, as they demonstrated when rejecting a special youth wage dispensation proposed by government, the system in place in this sector and based on a 1992 agreement, basically boils down to a two-tier system. NUMSA believes the proposed SEIFSA amendment would unreasonably restrict the withholding of labour by the union during company level disputes. This may prove to be a very tricky point in reaching a final settlement today, one that could scupper the latest offer and cause the costly strike to drag on indefinitely. The sector has already been hard hit with at least two manufacturers shutting down or reducing production, while many smaller businesses servicing or supplying the sector are facing serious difficulties. The decision that NUMSA reaches today could therefore be a make-or-break one for collective bargaining in the sector, for the strike itself, for many companies involved and for NUMSA and its members too. It will take some truly creative thinking for both parties to come up with a mutually acceptable compromise and end the strike today.

SAMWU’s “unnoticed strike” as 2015 negotiations loom - Minister Gordhan’s possible impact

While the focus on the labour front this past month or more has been on the aftermath of the platinum sector strike and the currently ongoing NUMSA strike in the metals and engineering sector, the SA Municipal Workers’ Union (SAMWU) has “quietly” been engaged in labour disputes that threaten to spread over a broader front - something of an “unnoticed strike”. The disputes have largely gone unnoticed because they have been fractured and localised instead of the union engaging in large-scale nationwide action of any kind. Last week the union threatened to turn sporadic stoppages into a full-blown strike at the Nelson Mandela Bay Metro in Port Elizabeth if salary issues were not addressed. SAMWU has also become embroiled in a political dispute with the North West government after the latter stripped the Ngaka Modiri Molema District Municipality council of its powers over alleged corruption. The dispute continues to simmer and could lead to more tensions or even labour action. In Cape Town tensions between SAMWU and the Metro council also continue to simmer, while two weeks ago SAMWU members in Grahamstown ignored a court order declaring their strike illegal. And in Tshwane city bus drivers who are members of SAMWU embarked on an illegal strike earlier this month without prior notice.

·     What it means:  The spreading and simmering tensions and illegal actions, as well as the political undercurrents in some respects, speak of a union that is restless on multiple fronts, while militancy seems to be on the rise too. Any of the current issues could quite easily lead to action across a broader front if allowed to get out of hand. However, SAMWU is locked into a three-year wage deal that only ends this year and therefore cannot embark on a national strike over wage demands at this time, which explains the sporadic local actions. However, any of these issues can trigger sympathy action across a broader front, but more likely than not the union may in a sense simply be rehearsing for next year. Also, SAMWU is probably closely monitoring the fulfilment of conditions of the 2012 three-year wage deal, such as that municipalities had to fill 30,000 vacancies countrywide. Such issues will be stacked in the SAMWU arsenal for wage negotiations next year and possible action. The appointment of former finance minister Pravin Gordhan to turn local government and service delivery around as the new minister responsible for local government, could also impact as Gordhan will undoubtedly introduce austerity, performance and reform measures that may not go down well with the union.

Written by Africa-International Communications political analyst and editor Stef Terblanche