MACSTEEL has confirmed receipt of the notice of protest action by the National Union of Metalworkers (Numsa) and has dismissed the union’s claims that the company has allegedly unilaterally amended the terms and conditions of employment of its employees in respect of medical aid and accidental death benefits.
Macsteel CEO Mike Benfield said these claims are unfounded.
“This action is condemned and viewed as an effort to create unnecessary conflict,” he said.
He said when it came to Medical aid, there was a clear distinction between scheduled and non-scheduled employees in this regard.
He explained that non-scheduled employees are governed by the Basic Conditions of Employment Act, whereas scheduled employees are governed by the Metal and Engineering Industries Bargaining Council.
“The description of medical aid benefits on the payslips of non-scheduled employees changed in 2018 where it no longer reflected as a separate line item, but was included in their remuneration. Non-scheduled employees’ remuneration was increased with a value equal to the company’s medical aid contribution and the employee was not left worse off financially. All scheduled employees as at the end of July 2018 continued to receive a 50% medical aid contribution as a separate line item on their payslips,” said Benfield.
He said all new employees, both non-scheduled and scheduled, employed after July 2018 entered into their contracts of employment with Macsteel on the basis that the medical aid is no longer compulsory.
“Should any new employee choose to join a medical aid, he or she will be liable for full medical aid premium,” he said.
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He refuted allegations that a unilateral change to terms and conditions has consequently occurred in respect of medical aid contributions.
Benfield also denied there was a unilateral change in terms of conditions of employment in respect of group personal accident cover.
“Macsteel has requested Numsa to withdraw these allegations immediately. Any strike action in this regard will be unprotected and illegal and Macsteel will be approaching the courts on Thursday, 13 October to declare any strike action as illegal and unprotected,” he said.
