The National Union of Metalworkers of South Africa (Numsa) said on Monday it had signed a three-year wage agreement with ArcelorMittal South Africa.(David Harrison/M&G)
The National Union of Metalworkers of South Africa (Numsa) said on Monday it had signed a three-year wage agreement with ArcelorMittal South Africa.
The agreement, which will be backdated, is valid from 1 April to 31 March 2026 and will be binding on all permanent employees in Newcastle, Vanderbijlpark, Vereeniging, Pretoria, Durban, Richards Bay and Saldanha.
Headquartered in Vanderbijlpark, ArcelorMittal South Africa is the largest steel producer in sub-Saharan Africa and the world’s second largest steel producer after China’s Baowu Group.
Numsa general secretary Irvin Jim said: “We welcome the signing of this agreement particularly because at some point we were on the verge of a strike.”
“[W]e managed to find one another and this has been crucial in resolving this round of wage talks. We want to thank the negotiating team for their hard work,” said Jim in a statement.
The company’s more than 10 000 workers will receive a 6.5% increase in year one and two. In year three, the raise will be in line with inflation but capped at 6.5%. In the first year there will be a once-off cash bonus of R10 000. No other cash bonuses have been announced for the following years.
The agreement includes a medical aid subsidy, which will increase by 6.5% for year one and in years two and three the increase will be inflation linked but capped at 6.5%.
But the company contribution for medical aid will remain at 60% for the employer and 40% for employees during year one. In year two the medical aid contribution by the employer will increase to 65% and workers contribution will reduce to 35%, subject to the medical subsidy cap. And in year three the medical aid contribution by the employee will increase to 70% and employer contribution will reduce to 30% subject to the medical aid subsidy cap.
All allowances will increase by 6.5%, in year two all allowances will increase by the consumer price index but be capped at 6.5% and in year three there will be a 6.5% increase for all allowances.
Paternity benefit will increase from 10 to 12 days and the funeral benefit will increase from R10 000 to R20 000 in the first year of the agreement.
Workers in the metals and engineering sector went on strike for three weeks in 2021 after Numsa rejected a proposed wage agreement by the employer association, the Steel and Engineering Federation of South Africa (Seifsa).
