Employer bodies argue over wage negotiation framework

01 Feb 2016 | Admin Author

The National Employers Association of South Africa says current legislation on collective bargaining wage negotiation, amounts to a conspiracy against smaller businesses.

Neasa Chief Executive Gerhard Papenfus has warned bargaining federation Seifsa that it will go to court to prevent an unaffordable increase agreement being enforced across the industry.

He says Neasa represents about 3000 members, most of whom are smaller players in the industry, and that their members cannot afford the offers being tabled by Seifsa:

"Numsa recently said in a meeting that the industry lost in the last five years 250 000 jobs. The general secretary of the bargaining council recently said in national television that the industry has lost 750 000 jobs. There is just more or less 400 000 employees left in this industry. After each and every deal Seifsa struck in the past led to immediate loss of jobs," he said.

Papenfus says the agreements are unsustainable and in the past have almost immediately led to employers having to resort to retrenchments and mechanization.

Meanwhile, Seifsa has condemned Neasa's stance as propaganda.

CEO Kaizer Nyatsumba said in a statement Seifsa dismisses with contempt allegations by Neasa that it has betrayed the interests of small business.

He added that Numsa has not yet reverted with a response to the offer tabled on Tuesday but says it is the very last offer and will be removed from the table if not accepted.