THE National Union of Metalworkers of South Africa (Numsa) has minimised the jobs bloodbath at Cast Products, which planned to retrench 146 workers.
Negotiations between the union and the employer resulted in the collective agreement which was signed on Tuesday, 27 September.
Cast Products is a steel manufacturing company with operations in Dinwiddie, Boksburg and Benoni employing approximately 820 employees in the bargaining forum.
The company was initially planning to retrench 146 workers because it is in financial distress.
It is also currently under business rescue which started in February 2022.
“Numsa, through lengthy talks with the employer, has managed to negotiate for the forced job cuts to be reduced. We have also negotiated increases for the next two years for those who will remain. For the first time this agreement will also be extended to salaried staff who have not received increases for the past four years,” said the union’s Ekurhuleni regional secretary Thembile Livi.
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The agreement is broken down as follows:
For the first year, workers will receive a 6% across the board increase on the actual rates of pay and based on the gross salaries for staff. The first year increase will be backdated from the 1st of July this year and increases will be paid in full on or before the end of October 2022. The increase will be in effect until 30 June 2023.
For the period 1 July 2023 and 30 June 2024 (second year) all employees will receive a 7% increase and the agreement will expire on 30 June 2024.
The parties agree that all outstanding issues will be deferred to the 1 April 2023.
Livi said when Cast Products was placed under business rescue the assumption was that many jobs would be lost. “However, Numsa successfully negotiated that there will be no forceful retrenchments, because parties have agreed to find ways to avoid forced job cuts and the employer has agreed to find ways to retain the majority of the staff,” he said.
He said Numsa negotiated with the business rescue practitioners Refilwe Ndlovu and Johan Du Toit and the agreement was proof that working together with employers, viable solutions can be found which can benefit all parties.
“We continue to urge employers to work with Numsa because we are able to negotiate solutions which can enable the company to be sustainable in the long-term, without resorting to massive job cuts,” said Livi.
