Tough wage negotiations continue
20 July 2010

The battle for wage increases above the inflation rate continues, the trade union Solidarity said today. Solidarity entered a 7% wage agreement at Dense Media Separation Powders (DMS Powders) and Manganese Metal Company (MMC) and a 7,5% wage increase at Samancor. An update on the latest wage increases is as follows:

• DMS Powders After just two rounds of wage negotiations at the world’s biggest producer of ferrosilicon, DMS Powders, a wage increase of 7% was agreed on 24 June. An additional R500 increase on employees’ annual bonus of R13 000 was also negotiated. The bonus of R13 500 will be paid out in two equal amounts annually.

• MMC Solidarity reached a wage agreement of 7% at MMC, the world’s biggest producer of pure electrolytic manganese metal, last week. The wage offer includes a once-off payout of R3 600 to all employees.

• New Tyre Manufacturing Industry (NTMI) Wage negotiations for the biggest producers of tyres in South Africa, including Continental, Dunlop, Bridgestone and Goodyear, are underway at the NTMI Bargaining Council. Negotiations reached a stalemate this week, after Solidarity rejected the Bargaining Council’s wage offer of 4,8% and an additional production bonus of 3%. Negotiations will resume on 27 July.

• Silicon Smelters Solidarity declared a dispute following four rounds of wage negotiations at Silicon Smelters, the biggest producer of silicon in South Africa. The dispute was declared on 8 July, after the company refused to raise its wage offer of 5,5%. Solidarity currently demands a wage increase of 11%. Meanwhile, a mediator has been involved in the negotiations in order to settle the dispute.

• Samancor Wage negotiations at Samancor’s Metalloys facility in Meyerton reached a stalemate on 23 June, after which Solidarity accepted a wage offer of 7,5% on 19 July. Solidarity also negotiated a 6,5% increase on employees’ annual bonuses and a R100 increase on their medical aid benefit.

• Columbus Columbus, a producer of stainless steel in Mpumalanga, stood by its 5% wage offer in the second round of wage negotiations held last week. Solidarity demands a wage increase of 10%. The third round of negotiations will commence soon.