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Court grants Neasa further relief

Johannesburg - The Labour Court on Tuesday extended a court order preventing the Metal and Engineering Industries Bargaining Council (MEIBC) from asking the labour minister to extend the July wage agreement in the sector.

The National Employers' Association of SA (Neasa) said in a statement this followed its urgent application to prevent the agreement - between the Steel and Engineering Industries Federation of SA (Seifsa) and trade unions - being extended to parties or employers not party to it.

"On September 25, the Labour Court granted interim relief following the urgent application by Neasa.

"The matter was to be heard today [Tuesday]. However, a new date for arguments for final relief has been set for Friday, November 14."

Neasa CEO Gerhard Papenfus said the judgment prevented the agreement, which they believed was detrimental to the whole industry, being extended.

Neasa wanted the Labour Court to declare the management committee appointed by the MEIBC's annual general meeting invalid, and that all decisions taken by the committee relating to the extension also be declared invalid.

This followed a strike in the metals industry, which started on July 1 and lasted four weeks.

Seifsa signed the agreement on July 29, on behalf of the 24 federated associations and two associations who were still involved in internal mandating processes.

In terms of the three-year agreement, workers are to get increases of between eight and 10 percent in the first year, 7.5% and 10% in the second year, and seven to 10% in the third year.

Neasa announced it would lock out union members who participated in the strike because its demands had not been considered during the wage negotiations.

Neasa members wanted a standardised entry-level wage and a revamped exemptions policy. It has offered an eight percent across-the-board salary increase.

In September, an application to the Labour Court by the National Union of Metalworkers of SA to declare Neasa's lock-out of employees illegal, was dismissed with costs.

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