Welcome to the next edition of the Labour Newsflash

 In this edition we cover wage settlements and also, as always, discuss two interesting cases.

The wage settlement in the construction sector at 12% and  was followed by 10% per annum in the automotive manufacturing sector.

These settlements create a bad precedent for other employers in respect of what the level of increases should be this year. It is our opinion that the majority of employers cannot afford double digit figure increases and unfortunately the result will be job losses in some form or another.

It is quite remarkable that up to now very little violence and intimidation has taken place in the strikes except for the petrol attendants strikes where there has been a number of incidents of intimidation and violence.  It is important that employers take decisive action against violence and intimidation as we cannot live with this kind of conduct in any South African workplace.

It would be important for employers to set up a tracking mechanism in sectors where high settlements were achieved to monitor and record on job losses that occur as a result of high settlements. This information is lacking in most sectors and clearly needed if we are going to change perceptions about double digit increases.  It is also remarkable that it takes a 3 week strike in the automotive sector in order to get a settlement that is still in double digits.

This does not set a good precedent for future negotiations as workers believe they have to go on strike to achieve high settlements.

Do you need assistance with negotiations and/or strike management? We have assisted may companies over the years. Do not hesitate to contact us should you require our assistance. We have offices countrywide.

Click here to read the cases

‘Till next time
Johnny and Grant