On the second day of wage negotiations‚ the National Union of Metalworkers of South Africa (Numsa) rejected the offer by the bargaining council for employers in the engineering sector.

The offer is a 5.3% increase but Numsa is asking for a 15% increase based on the rate an employee is working and not on the minimum rate.

Numsa said it also wants the agreement to include non-parties‚ such as the National Employers Association of South Africa (Neasa) and the Plastics Converters Association of South Africa (Pcasa) who fall under the the Metal and Engineering Industries Bargaining Council.

The current wage agreement ends on June 30. The union wants a two-year agreement while the employers are pushing for three years.

The employers are offering: an increase of 4% in the second and third year‚ if the consumer price index (CPI) is below 4%. But if the CPI in those years is above 8%‚ then they are offering an increase of 8%.

Numsa said the employers also want new employees to earn half of the minimum rate.

In a statement on Friday‚ Numsa said it is “shocked by the offer”‚ particularly that equal pay for work of equal value will be violated through the 50% offering to new entrants to the sector.

Wage talks resume on June 15.

Source: TMG Digital.