EXECUTIVE SUMMARYA meeting took place between the Corporate Financial Manager, Mrs Connie Rabulele, and the author on 20 June 2005, with regard to the current wage negotiations with the trade unions, namely the United Workers and Allied Trade Union of South Africa ("UWATUSA"), the Amalgamated Steel and Allied Trade Union ("ASATU") and the Metal and Steel and Allied Trade Union ("MESATU"), which negotiations may lead to a dispute and eventually a strike action led, specifically, by UWATUSA. Mrs Rabulele has proposed a set of steps that should be followed in response to this threat, and the author has reviewed Mrs Rabulele's proposals, and this report is addressed to Mrs Rabulele and is intended to provide an opinion regarding the proposed steps in view of the impact that the governing labour laws of the Republic of South Africa may bring to bear, should the company pursue the proposed steps.
The collective agreement of mutual interest was reached at the Bargaining Council whereby an 8% across the board increase was concluded through the process of negotiation.
The fact that the trade unions are now claiming 10% is a dispute that they must first refer back to the Bargaining Council for conciliation and then arbitration before they could take it to the CCMA. The employers, unions and their members are bound by the terms of the agreement; in this case the three unions are bound by the 8% wage increase that was collectively agreed in the Bargaining Council.
It is also recommended that:Ã¢ÂÂ¢Mrs Rabulele should reassess the current situation and reconsider the effects of implementing the proposed actions in order to save the company the time and the cost of going through the litigation process, and of paying the remedies for automatically unfair dismissals and the like.
Ã¢ÂÂ¢A meeting with the trade union...