The National Union of Metalworkers of South Africa (Numsa) has finally signed a wage agreement with steel-maker ArcelorMittal South Africa (Amsa), after talks stalled last month with the threat of a strike on the cards.
The union said yesterday the agreement was valid for three years from the beginning of April to the end of March, 2026. The deal would be binding on all permanent employees in Newcastle, Vanderbijlpark, Vereeniging, Pretoria, Durban, Richards Bay and Saldanha.
The agreement will be backdated to the beginning of April, meaning workers will also receive backpay.
The wage agreement for year one included a 6.5% increase; 6.5% for year two; and for year three the increase will be consumer price inflation-related (CPI), but capped at 6.5%. There will also be a once-off cash signing bonus of R10 000, medical aid subsidy to increase by 6.5% for year one, for year two it will increase by CPI, but capped at 6.5%, for year three it will increase by CPI but capped at 6.5%.
Amsa’s contribution of medical aid will remain at 60% for the employer and 40% for employees for year one, for year two the medical aid contribution would increase to 65% and workers’ contribution will reduce to 35%, subject to the medical subsidy cap. And for year three it will increase to 70%, but employer contribution will reduce to 30% subject to medical aid subsidy cap.
All allowances will increase by 6.5%; for year two all allowances would increase by CPI but capped at 6.5% and for year three and 6.5% increase for all allowances.
Paternity benefit will increase from 10 to 12 days and funeral benefit would increase from R10 000 to R20 000 in the first year of the agreement.
Amsa failed to respond to queries at the time of publication.
Numsa said it welcomed the signing of this agreement, particularly as at some point they were on the verge of a strike.
“However, we managed to find one another and this has been crucial in resolving this round of wage talks. We want to thank the negotiating team led by the regional secretary Kabelo Ramokhathali for their hard work,” the union said in a statement.
Releasing the company’s South Africa financial results in February for the year ended December 31, 2022, ArcelorMittal South Africa’s CEO Kobus Verster said Amsa’s headline earnings of R2.6 billion were down 62%.
At the time, the firm reported that globally, steel prices had declined at a faster rate than that of raw materials; this was particularly evident in the second half of the year.
In its annual results outlook at the time, Amsa said internationally, the World Steel Association was expecting a recovery in steel demand this year.
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