'Labour issues threaten recovery'

Johannesburg - On Monday the Steel and Engineering Industries Federation of Southern Africa (Seifsa) cautioned that several obstacles lie ahead before the economy's anticipated recovery.

Most of these relate to labour relations, declares an announcement by Seifsa chief executive David Carson.

Seifsa is an umbrella body for 35 employer organisations which together have more than 2 400 companies as members.

It represents these companies - including the big steel manufacturers and consumers - at forums like the National Economic Development and Labour Council and the Sectoral Bargaining Council.

According to Carson, more than 75 000 posts in the sector were lost between February and December last year because of the recession.

Although it would appear that the downturn has now been checked and that the "worst of the most extreme conditions in the industry" have gradually come to an end, he says the sector's labour regulations will continue to reflect the recession for some time.

The many short-time arrangements introduced will remain for at least the first half of the year, he reckons.

He also deplored government's plans to put an end to labour-broking by, among other things, possibly prohibiting the practice in certain sectors.

Seifsa will, according to Carson, do everything in its power to protect members' rights to flexible hiring practices.

Seifsa members can find comfort in the absence of wage negotiations this year, he says.

In terms of a multi-year agreement, in 2010 the sector would give workers an increase of at least 7.1% for higher paid workers and 8.1% for the lower paid.

But in the latter part of the year negotiations will resume regarding the possible merging of the categories in which workers find themselves on the wage scale, says Carson.

- Sake24.com

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