By Lehlohonolo Lehana.
The strike at ArcelorMittal South Africa (Amsa) is over, after a deal was struck late on Wednesday between the JSE-listed steel giant and the National Union of Metalworkers of South Africa (Numsa).
The National Union of Metalworkers of South Africa (Numsa) has signed an above-inflation increase for all workers at steel giant ArcelorMittal South Africa.
Workers in plants across the country had downed tools on 11 May, demanding higher wages and improved conditions.
Numsa officials met with ArcelorMittal executives to discuss a revised offer from the steel manufacturer.
Workers have agreed to a 6.5% increase across the board.
“The increase means that allowances will also increase by 6.5%. Workers will also receive a once-off cash payment of R5000,” said the union in a statement.
The agreement comes into effect on 1 April 2022, and it expires on 31 March 2023.
The increase will be backdated to 1 April and will be payable on the normal payment date for the month of June 2022.
Allowances will also be backdated and paid in June.
Parties agreed to investigate other incentives for an employee incentive share scheme including ESOP and the KPI bonus/Gainshare.
“This agreement is a victory for all Numsa members who made the ultimate sacrifice to fight for improved wages and conditions. They did not do this only for themselves, but also, for future generations of workers as well,” said Numsa.
The increase comes after tense negotiations and court action from the company.
Meanwhile, Amsa confirmed the deal in a Sens statement issued on Thursday morning.
“The company is pleased to advise that a wage agreement has been reached on 25 May 2022 with Numsa and Solidarity that brings an end to the two-week long wage dispute and strike action at the company’s operations, “it said.
“We are serious about working with our stakeholders to create mutually beneficial outcomes,” commented Amsa CEO Kobus Verster.
The agreement that has been reached with the unions is testament to the commitment of all parties to move the business forward rather than getting stuck in an unfortunate wage dispute that does not serve anybody, especially our employees,” he added.
Earlier this week the group bemoaned the violence linked to Numsa’s strike action, saying the strike has been marred by acts of violence and intimidation of non-striking employees. It stressed that this goes against strike and picketing rules agreed upon by both parties.