2024 Metal and Engineering Industry (MEIBC) negotiations finalised
After only three formal engagements, certain affiliated employer’s organisations have concluded a three-year wage agreement for the period 1 July 2024 to 30 June 2027, with NUMSA.
The affiliated employer’s organisations that were part of the agreement accounts for about 57% of all employees who are employed within the scope of the council, and NUMSA represents more than 115 000 members.
Although not all employer’s organisations have agreed to be a party to this agreement, the conclusions of this year’s negotiations come as a sigh of relief for industry employers, when considering that the 2021 negotiations resulted in a three-week strike, costing the industry in excess of R600 million rand per day in lost revenue.
The agreement prescribes wage increases to be calculated on the scheduled or gazetted minimum rates of pay per grade over the next three years.
As per the table below, Rate A will receive a 6% increase in year 1, and Rate H will receive the highest increase of 7%. In years two and three of the agreement, Rate A will receive a 5% increase, and Rate H will receive a 6% increase.
It is important to note that Increases are made on the rate of pay that each scheduled employee is actually earning.
The following table reflects the general increases for 01 July 2024 – 30 June 2025
Non-parties and exemptions
Although the current agreement is not binding on employers who are not members of employer’s organisations that were parties to the agreement, the Minister of Employment and Labour will be requested to extend the main agreement to all non-parties.
Employers that are members of affiliated employer’s organisations have until 31 July 2024 to apply for exemption, if they are unable to afford the prescribed increases. Non-party employers have 30 days from the date the Minister extends the Main Agreement to non-parties to do so.
It is however important to note that all employers wishing to apply for exemption in 2025 and 2026 must do so before 31 July 2025 and 2026.