Metal and Engineering Bargaining Council (MEIBC) Wage Negotiations progress 

 8 May 2024 

The metal and engineering sector negotiations kicked off between employer and union stakeholders in February this year, when more than 20 employer’s organisations affiliated with this sector met with their union counterparts to negotiate the conditions for the extension of the MEIBC Main Agreement.

The parties have, in the last three decades, not concluded an agreement during the currency of an existing agreement, but this year’s wage negotiations show promising progress as parties have narrowed down their demands to eight key issues, raising hopes for a potential agreement at the next meeting which is scheduled for 8 May, 2024.

The issues that are currently still in dispute, is summarised as follows:

1. Rolling over of current MEIBC Main Agreement terms:
There is a general consensus among the parties that the current Main Agreement’s terms and conditions should continue the proposed new agreement period of three years. This means that the current conditions of employment, as contained in the existing Main Agreement, will remain unchanged.

2. Extension of New Agreement to non-parties:
Employer’s organisations have opposed the proposal to extend the Main Agreement to employers who are not parties to the negotiations. The decision to extend the Agreement to non-parties require a majority vote at the Council, and the Minister of Employment and Labour will make the final decision.

3. Housing Subsidy:
The parties require more clarification from the MEIBC fund trustees because they would be the source of this benefit, if the parties agree to a housing subsidy.

4. Industry Policy Forum:
Employer’s organisations have opposed this issue, and explained that this has, to date, been unsuccessful, because outsourced consultants are allegedly not delivering on their mandates. There was consensus amongst the parties that this needs to be urgently addressed, and that the various forums that are required to do so, will comprise nominated party members.

5. Job Creation Initiative:
A proposal for a lower entry wage scale was rejected by most parties. This proposal was made to stimulate the sector, but opposing parties submitted that there are existing government initiatives in place, and that this proposal should therefore fall outside the scope if these wage negotiations.

6. Special Dispensation on Salary Scales Phase-in:
Employer’s organisations have advocated in favour of the retention of a ‘special dispensation on salary scales phase-in’, especially for Small and Micro Enterprises (SMME’s), and struggling businesses. Unions however proposed eliminating the provision for phasing in salary scales.

7. Revised Exemption Criteria:
Employer’s organisations proposed that amended exemptions criteria for SMMEs and struggling businesses be adopted. They submitted that the process must be aligned with government initiatives to reduce compliance burdens. They motivated their proposal by saying that there is a necessity for a much-needed voice for smaller enterprises. A draft proposal will be prepared for acceptance by the unions.

8. Salary Increases and Actuals vs Minimum wages:
Parties agree that increases should be based on the prescribed minimum wages for each category, and not on the actual rate per hour. This issue has not been finalised between the parties

The final wage increases percentage hinges on the resolution of other key issues.

In conclusion, all parties involved aim to provide feedback to their members and reconvene on 8 May 2024, with a final mandate for settlement.