Volume 10, No.5 - August 2001

Privatisation

Trade union news

Unions score victories in this year's wage disputes
But others fight on

By Moloto Mothapo

This year's wage bargaining season has seen an upsurge of workers' militancy. Unions organising in various industries have refused to bow to the employers' "insulting and meagre" offers. Their determination has guaranteed workers some important victories. However, such triumphs did not present themselves on a plate, but through sweaty negotiations and action on the streets. And, as we go to press, several disputes are unresolved and workers are on strike.

The COSATU-affiliated unions, National Union of Mineworkers (NUM), National Union of Metalworkers of South Africa (NUMSA), Chemical, Energy, Paper, Printing, Wood and Allied Workers Union (CEPPWAWU) and the predominantly white, Mineworkers Union Solidarity, forced employer in various sectors to back down.

For the first time in the history of the labour movement, unions within an industry, irrespective of difference in race or objectives, joined hands to demand wage hikes.
NUMSA, NUM and the Mineworkers Union Solidarity brought power supply across the country to a halt when their 23 000 members downed tools at the electricity giant, Eskom. The unions demanded wage hikes of 11 percent for the minimum earners and nine percent for the highest earners.

The demanded figures were against the company's unilateral implementation of seven and nine percent respectively. Although Eskom initially contested that the strike was not going to do damage, the parastatal eventually succumbed.

The massive strike was also characterised by crossfire of legal interdicts. Only a few hours before the strike kicked off, Eskom made an urgent application to the labour court, interdicting workers in the essential services sector from participating in the action. The unions retaliated by launching a successful interdict, stopping the utility from imposing its offer.

The court ruled out Eskom's interdict. Said NUMSA spokesperson, Dumisa Ntuli: "We have always insisted that the company's urgent application was irresponsible and unnecessary in the light of the unions' written undertaking that the workers in the essential services will not participate in the strike action. We are now vindicated and feel victorious that the matter has been withdrawn."

The company's failure in the legal arena saw its eventual demise in the wage contest after the company offered a ten percent and 7,5 percent for minimum and highest earners respectively. The euphoric unions said the offer would collectively empower workers to take a stake in the company and absorb the consequences of wage cuts.

"It would always be our responsibility in this regard to renew our determination to address the company's legacy of non-commitment to the betterment of working conditions by settling at improved wages above the inflation rate," the unions said.

The action's outcome has indisputably settled as a landmark in the labour fraternity.
For NUMSA and NUM, the Eskom match has not been the only one they triumphed in. The two unions also struck attractive wage agreements in steel and engineering and mining industries respectively.

NUMSA and the employers' organisation, Steel and Engineering Industry Federation, signed a two-year wage agreement on behalf of 200 000 workers trading in the industry. The 'historic' agreement, signed after hectic bargaining and extensive consultation within the industry, provides wage hikes of nine percent for the lowest paid and eight percent for the highest earning employees.

The agreement is also attached with friendly provisions for workers living with HIV/Aids, special working conditions for pregnant workers and an increase in the re-employment of the number of axed staffers. Welcoming the agreement, NUMSA said the provisions will benefit the workers and will go a long way in improving their living standards.

"The agreement is in pursuance of our goal in advancing towards a real workplace democracy and ensuring that workers have access not only to decent wages but increased benefits that will improve their lives and cater for social unemployment," said the union.

The agreement between the employers' federation and the union was struck amid the strike action at the steel-making company, Iscor. The action, which the company averted after a day of what was to be a long damaging strike, saw a turnout of 15 000 workers. The company agreed to increase their offer from the initial seven percent to nine percent.

"There is no doubt that the strike was difficult for Iscor Company, in terms of production and contracts - that is the reason they settled so quick," said NUMSA.
The NUM jackpotted in the mining industry after long negotiations with the Chamber of Mines - preventing a crippling strike which was expected to hit the sector.

Duiker, Afri-Ore and Kangra were the first to accede to the union's demands, not only on issues relating to wages, but also on basic conditions such as medical aid and annual leave. NUM's 96 723 members, who voted in support of a strike action, demanded 8,5 percent or R2000 hike in wages for minimum earners and 25 annual leave days.

The NUM deputy president, Crosby Moni, said the demands were humane and the industry should feel compelled to correct the poor legacy of the past. The humanity of the demands was justified by the support the strike action received from the international mining investors.

This move pressurised the Chamber of Mines to make a much-needed concession and a consequential signing of this year's wage and other working conditions agreement. Said Moni: "The fact that employers have found agreement with us on these important issues that aim to improve the quality of working on the mines, means that we will tread this path together."

In the Pulp and Paper Industry, although the employers in the sector nearly pushed the workers beyond the edge of a crippling strike action, they responded before it could fledge fully. The employers met the union's seven percent wage increase, shifting from their initial offer of seven percent.

These disputes prove the value of having strong, fighting unions. They still have a long struggle ahead, but the workers' determination has forced several important employers to thing again before trying to impose poverty wages increases on their workforce.