A MUST READ (Part 9): Why the so-called "consolidated main agreement" should not be extended to non-parties - 90% of employers in the Steel Industry.

Dear Steel Industry employer

What follows is another letter by a Steel Industry employer to the Minister of Employment and Labour.

Regards

Letter by employer:

We are a small independent company who manufacture, supply and install equipment to the poultry industry.  As a company, we do not agree or support the extension of the agreement to all non-parties, the reasons of which are set out below: 

• How can we, as a company, be forced to adhere to the conditions of an agreement of which we have played no part in negotiating the terms?
• Be forced to adhere to wage agreements, which again, we have had no part of and now need to adhere to with no financial consideration for the non-party employers taking place.
• Should the company be forced to adhere to this agreement this could possibly result in the financial downfall of the company with all employees being affected, not only those employees who are members of the MEIBC.
• This will result in financial pressure and in the worst possible scenario job loses in an industry which has been affected by the significant steel price increases in 2022 due to the surge in raw material prices, a decrease in iron ore production, the rising cost of energy and an increase in logistics cost.
• Competing in a market where it can be cheaper to import than manufacturing locally due to high costs inputs.
• Trying to maintain profitability and retain all jobs for all employees and as is the case with many other companies, trying to recover financially from a background of Covid19, riots in Kwazulu in 2021, flooding in 2022 and the current economic climate. 

We are not the only company facing these tribulations and we value all our employees and do not wish to face the possibility of any job losses; we have been in business since 1984 and wish to continue for the next 40+ years.

For more information:
NEASA Media Department
media@neasa.co.za