NEASA calls on Labour Court to scrap the Metal Industry Agreement

Oscar Thomas
10 February 2015

The National Employers Association of South Africa has filed a review application at the Labour Court into the scrapping of the extension of the July 2014 Metal Industry Agreement. 

Minister of Labour Mildred Oliphant last year extended the wage agreement between trade unions representing 34 percent of employees in the Metal Industry and Seifsa.

Neasa Chief Executive Gerhard Papenfus said the minister extended the agreement without considering the negative impact it will have on business and employment. 

Papenfus said notwithstanding admitting that they have failed in the negotiations, they convinced the Minister to extend this agreement.

Papenfus said The Minister complied with this request, disregarding the poor levels of representatives of the parties to this agreement and also ignoring the damage it will cause the Industry.

Papenfus said this is an irresponsible act that illustrates how the cooperation between monopoly capitalism and socialism, with the support of government, can work against the interests of SMME's.

Papenfus said the extension of this agreement is also unconstitutional and not compliant with the rules of administrative justice.

“We will bring this case before the Labour Court in due course” Papenfus added.