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The National Union of Metalworkers of South Africa (NUMSA) in Mpumalanga rejects with contempt attempts by Waco management to blackmail workers into accepting changes to their terms and conditions, because of the Coronavirus lockdown. We have written a letter to the management expressing our dismay at the fact that the CEO Stephen Goodburn issued a letter to staff where he proposed that from the 1st of April, workers earning over R150 000 per year will have their salaries cut by 17% and those earning less than that will experience a 12% reduction for a period of 3 months. If workers do not accept the proposal to have their salaries cut, then the company is threatening them with enforcing no work no pay provisions, retrenchments and company closure. 

It is our view that this letter is clearly not a response to the Covid-19 pandemic, but rather a restructuring plan designed to increase profit margins, through wage cuts. The management of Waco, like all capitalist entities are cold, calculating and ruthless. As a society we are seized with the crisis of the Covid-19 pandemic which is spreading across the globe like a wildfire, spreading mass devastation in its wake. We should all be concerned about the survival of the human race, but ruthless companies like Waco, can think only about their profit margins and balance sheets. They see an opportunity to enrich themselves and they are hiding behind the pandemic in order to further their own selfish interests.

We have noted how the government has rushed to ensure that the business sector is cushioned from the virus, by implementing a debt relief fund for SMME’s and Micro enterprises through the Department of Small Business Development. The fund is to protect small and medium sized business owners, amid interruptions in productivity and loss of income, but companies like Waco are either refusing to pay workers their salaries, or are threatening them with wage cuts and retrenchment. It is shameful that the private sector is benefitting from measures which government has implemented, but business owners are not passing these savings on to the workforce. They are concerned only with mass accumulation, whilst workers and their families’ suffer. The department of Economic Development must explain to the public how it can allow taxpayer money to be spent bailing out and supporting companies, and then the very same companies exploit workers and deny them relief, especially during this crisis.

We repeat the demand made by the national leadership for guaranteed paid leave for workers and a national income grant to be paid to the unemployed. We also demand that all debt repayments, including home loans and rental payments must be suspended, for all households regardless of who they bank with. So far the banking sector has been allowed to determine the terms of these measures and we think there should be fixed standard for all households which should ensure that workers and their families’ do not have to worry about paying any debts, and that interest should not be charged during the debt holiday. All hospitals must be nationalized and treatment and testing for coronavirus must be free to take the burden of paying for healthcare and treatment during this time. It will be impossible to successfully implement a lockdown and reduce the spread of Coronavirus if people are forced to work because they are worried about paying their bills.

We have informed the management of Waco that they must implement the measures which have been made available for employees through the Temporary Relief Scheme and we are urging them to withdraw their letter calling for salary cuts. The TRS will make available a maximum monthly amount of R17 712 per month. We are also saying that if there is a shortfall, they should top it up for the duration of this pandemic and lockdown period.

Aluta continua!

The Struggle continues!

Issued by The National Union of Metalworkers of South Africa