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The National Employers Association of South Africa (NEASA) has made a grave mistake by allowing boardroom politics to deprive UASA members in the metal and steel sector from a well-deserved salary increase. This could have unintended negative results for NEASA.

The recent court interdict awarded to NEASA means that all companies associated with the association will not be able to increase salaries for employees, at least until the temporary interdict is heard by the labour court on November 4.

The danger for NEASA and its associated companies is that once the minister of labour decides to extend the agreement, salary increases may be backdated, which could then lead to a huge cost to be paid immediately for the respective companies.

A further risk is that the workers in the employ of NEASA associated companies may embark on a further strike, possibly supported by a sympathy strike by all employees in the metal and steel industry.

NEASA’s noble idea of saving the industry expense may therefore well result in higher costs and a salary increase of more than the current 10% demanded for lower graded employees.

Issued by UASA