More than 220 000 National Union of Metalworkers of South Africa (Numsa) members would embark on indefinite industrial action in the metals and engineering sector from July 1, while the union has also warned of a possible strike at power utility Eskom.
Numsa was demanding a one-year bargaining agreement with a wage increase of 12% in the metals and engineering sector.
Negotiations under the auspices of the Metal and Engineering Industries Bargaining Council (MEIBC) started three months ago and, upon reaching a deadlock during the last round of the negotiations, an independent facilitator was appointed to mediate, to assist the parties in reaching a settlement, Numsa explained in a statement.
However, the negotiations had reached a deadlock on Wednesday.
The employers’ latest three-year wage settlement offer comprised a 7% all-inclusive, cost-of-employment increase in 2014 and a consumer price index- (CPI-) aligned increase in 2015 and 2016 for Rate A employees and an 8% all-inclusive, cost-of-employment increase in 2014 and a CPI + 1% increase in 2015 and 2016 for Rate H employees.