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On Wednesday the National Union of Metalworkers of South Africa (Numsa) said it was duty bound to consult its members in the steel and engineering sectors on the latest SEIFSA proposals.
SEIFSA stated that a number of minor modifications to the draft settlement agreement were made during the course of these discussions, paving the way for ossible settlement of the dispute.
According to SEIFSA the events leading up to this important development had seen the failure of the bargaining council to resolve the deadlock and dispute at a meeting on July 18.
A certificate was issued on July 21 confirming that the dispute remained unresolved, thereby opening the way for protected strike and lock-out action in the industry.
Over the past few days, the general secretary of the bargaining council facilitated a process of engagement between SEIFSA and Numsa leadership in an attempt to identify, explore and discuss the obstacles preventing final agreement between the parties. SEIFSA said the process formed the basis of Wednesday's formal discussions.
Numsa spokesperson Dumisa Ntuli said talks were tense, complex and at some stage promised to provide a way forward for the industry.
"The employer federation responded extensively to many issues submitted by the union which relates to changing parameters on wages, guaranteed leave bonus, HIV/Aids drugs, limiting the duration of the labour brokers and family responsibility leave and the establishment of the entitlement fund," Ntuli said.
"We managed to address specific issues and put aside assumptions and constraints that limited the way forward. From our experience, we think that generally the dialogue was important in limiting risk and deliberating on the shortsightedness of not improving the wages and general working conditions in the industry."
Ntuli said the union's National Executive Committee meeting has been scheduled to take place on Friday for a final decision.
The union has warned that if an amicable agreement was not reached, the union would be obliged to issue 48-hour's notice for workers to resume industrial action.
Close to 230,000 workers are poised to go on an indefinite strike action in the metal industry. The wage talks cover 400 000 workers in the steel and engineering industry.
SEIFSA added that the unions have not notified it of their intention to implement strike action, and the possibility of this happening was unlikely given the positive progress made at Wednesday's meeting.
"At the meeting on Wednesday, a report-back of the facilitated interaction process was presented and the proposed amendments to the draft settlement agreement were considered and debated.
These amendments are largely of a technical nature and the proposed wage increases (ranging from 9.5% to 10.5%) and the structure of the wage model for increases in 2004 remain unchanged," SEIFSA said.
SEIFSA and trade unions have agreed to refer the modified draft settlement agreement to their respective constituencies for consideration and possible ratification.
A further meeting of the parties has been arranged for August 7 where the parties will report back on their respective constituencies' responses to the proposed package of amendments.
SEIFSA said it remained cautiously optimistic that agreement would be reached next week, bringing the three-month negotiation and dispute resolution process to a satisfactory conclusion.
