Metal Industry Main Agreement set aside by Labour Court

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 The Labour Court has set aside the 2011 to 2014 Metal Industry Main Agreement.

The Agreement is the result of a deal between the Steel Engineering Industries Federation of South and several trade unions, which the Labour Minister extended to employers who were not party to that Agreement.

The National Employers Association of South Africa, which has several thousand SMME members, had opposed the deal on the basis that it was un-affordable and would put many small business at risk.

Neasa says in setting aside the wage deal, the Labour Court found that the Agreement which the Minister of Labour extended was never even concluded under the auspices of the Metal and Engineering Industries Bargaining Council.

Spokesperson, Sya van der Walts, says the court also severely criticised the Bargaining Council and the Department of Labour for the irregular way in which it sought to extend the Agreement to those who were not party to the Agreement between Seifsa and trade union, including metal workers union Numsa.

"We are very delighted for the outcome of the labour court as it is a major victory for small businesses in South Africa. We also feel we will continue with the fight to get the current main agreement that the NEASE want to extend to industry to stop them from that, because irreparable damage was caused in the metal industry" she said.