Union refers dispute to bargaining council

Johannesburg - Solidarity has referred a wage dispute with steel producer ArcelorMittal SA [JSE:ACL] to the Metal and Engineering Industries Bargaining Council, the union said on Tuesday.

It was doing so after four failed rounds of wage negotiations and an internal dispute meeting with the employer, spokesperson Ilze Nieuwoudt said.

"ArcelorMittal's most recent wage offer proves that the company does not value the retention of scarce skills... It is a slap in the face," she said.

Nieuwoudt said the company's last offer was an increase of 6.5% for skilled employees and 7% and 7.5% for employees on two lower pay levels.

"This wage offer will estrange employees with scarce skills at ArcelorMittal and the company plans to implement a similar increase or less for 2012 and 2013... concluded from the company's guidelines.

"[An] escape clause determines that wage negotiations should be resumed if the company's financial position deteriorates."

The union and employer had also failed to reach consensus on leave policies, working hours and a date for the increase. A date for the dispute meeting had not been confirmed.