Metal sector wants to comb council’s books
Broke bargaining council ‘won’t get levy boost until it is audited’
EMPLOYERS in the metal and engineering industry want a forensic audit carried out on the sector’s bargaining council at their expense — and until that is done they will not budge on a levy increase.
At a meeting on Wednesday this week to vote on a proposed 18% hike in the levy paid by companies and workers, which the Metal and Engineering Industries Bargaining Council said was critical for its survival, employers called for the audit to investigate whether the council had mismanaged funds.
Gerhard Papenfus, CEO of the National Employers Association of South Africa, said: “The employer caucus unanimously decided that they would consider the continuation of the administration and levy fund once certain things are in place, such as a proper council structure, and once the forensic audit takes place.”
Gordon Angus, the executive director of the South African Engineering and Founders Association, said a forensic audit of the financial affairs of the council needed to be done to determine whether the council could continue to operate at all.
The two bodies have previously called for the council to be placed under administration.
“All we are saying is that we want to fix this thing urgently. We are not applying delaying tactics but we want a bargaining council that is well run,” Papenfus said.
The council — the largest bargaining council in the private sector, serving about 300 000 workers and 11 000 employers — has a R14-million deficit and has temporarily halted core functions such as dispute resolution because it does not have money to pay service providers. It has not had a levy increase since 2011.
Increasing the administration and dispute levy to 18% will save the bargaining council from collapse, said the council’s general secretary, Thulani Mthiyane, who added that the bargaining council supported the call for the forensic audit.
“It should happen, we also want this to work,” he said.
The employers have also called for an urgent AGM, which Mthiyane said the council would struggle to pay for.
“We feel like we have been left out in the cold,” said Mthiyane, as the council does not have funds to transport its members from all the provinces to the AGM. “We are not sure where the money to pay for transport and accommodation of our members will come from.”
Another pressing issue facing the bargaining council is that an accord with non-parties — those who are not signatories to the collective agreement on registration and administration expenses — will expire in June and these non-parties will no longer have to pay even the existing levy.
This means that only 1 600 employers will continue to pay, said Papenfus. His association, which represents about 2 500 employers, is not a signatory to the levy agreement.
Angus said while there was consensus on a number of issues, trade unions and employers did not see eye to eye on a trade union proposal that the bargaining council should ask Minister of Labour Mildred Oliphant to gazette and extend the current registration and administration expenses collective agreement for six months.
Marius Croucamp, deputy general secretary of the trade union Solidarity, said his union agreed with the employer bodies that levies should only be increased once the council is restructured.
“The audit, which I believe can be done very quickly, is crucial for this council,” he said.
Croucamp said the union agreed there should be an oversight committee after the audit on the council was completed. INNER WORKINGS: Employers in the metalworking industry have insisted on a forensic audit of the sector’s bargaining council before they will consider an increase in the levy to the severely cash-strapped council
All we are saying is that we want to fix this thing urgently
He said it was important that all these things, including the annual general meeting, should take place before the expiry of the levy extension agreement. “If this does not happen the council could lose up to 60% of its source of funding.”
Johan van Niekerk, the head of metal engineering at trade union Uasa, said his union supported the call for a forensic audit to be carried out. “We all want the council’s finances to be handled professionally.”
The Steel and Engineering Industries Federation of South Africa declined to comment. Metalworkers union Numsa could not be reached for comment and the Labour Ministry did not respond to a request to share its views.