Above inflation wage deal in the Engineering sector reached

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The National Union of Metalworkers of South Africa (NUMSA) has welcomed the signing of a seven percent increase which is above inflation, in the engineering sector.

The union participated in wage talks, as the largest union representing the majority of workers in the Metals Engineering Industries Bargaining Council (MEIBC).

According to General Secretary Irvin Jim, this deal is progressive because currently consumer price inflation is at 5.3% and despite the poor economic outlook, the union continues to secure increases which are truly beneficial to workers and their families.

“At the same time, we have agreed to ring-fence funding for workers in the Engineering sector to be able to access housing as part of this deal.

“This is truly historic because it has never happened before in the Engineering sector that such a commitment has been made, and we are proud to say it was NUMSA that spearheaded these achievements for workers.

WATCH | NUMSA General Secretary Irvin Jim on the signing of a seven percent increase wage deal

“NUMSA believes that at all times, workers who are responsible for creating the wealth, must also able to benefit by accessing housing,” he remarked.

Jim stated that the parties have agreed to forge a partnership with stakeholders including unions, employers and government.

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He added; “The matter of housing will referred to the Board of Trustees of the Funds (MIBFA) with the objective of developing an institutional framework, covering amongst other issues the eligibility, legal criteria, funding model/s, subsidy mechanisms and this must be done by no later than 3 months from the signing of the agreement.

“All processes and principles pertaining to accessing funds must be lawfully conducted. The union received an overwhelming mandate from all the nine regions in NUMSA.

Securing above inflation agreement

“We took a decision not to do traditional collective bargaining, but instead, we demanded that employers improve on the current agreement. We are happy that we secured an above inflation agreement because the base is higher at seven percent and also the confirmation that workers will access housing.

“This is the role of unions, to fight to improve the lives of workers and their families and we are happy that NUMSA continues to do so”.