A landmark wage agreement signed with giant steel producer

The National Union of Metalworkers of South Africa (Numsa) and world’s largest steel producer Arcelo Mittal have concluded an across- the- board 12 percent wage increase settlement. 

It is a historic agreement for it has established provisions to address among others, the critical shortage of skilled artisans by ensuring additional improvements on benefits, development and keeping qualified artisans. The increases will be effective from the end of June, 2008.

Skilful negotiators from both labour and management in a show of moral integrity also agreed to consider the negative effects of the ever rising headline consumer price index (CPI) which shot up to 9,8 percent in February from 4,9 percent a year ago, without resorting to strikes.

Wage increases for next year, as a result will be linked to CPIX plus one percent improvement factor in anticipation of further rise in volatile food prices, surpassing the highest levels seen in 2003.

The weekend agreement improved substantially the employment conditions of metalworkers whose wages which were fast eroded by the increase in core inflation rate, transport, housing, medical and health expenses,

It was also agreed that artisans who were being poached by other countries will receive additional performance improvement increase above 12 percent increases which will be decided upon in another meeting soon.

The splendor of the negotiations and the highest moral ettiquet displayed by Mittal management will hopefully give exemplary influence to other employers involved in house agreements of our sectors to take ethical stand on increases linked to consumer price increases.


For further information contact:

Mziwakhe Hlangani, Numsa national spokesperson

Cell phone: 082 9407116



Numsa News