Numsa and South32 in deadlock as wage talks fall apart

According to the union, the National Union of Metalworkers of South Africa (Numsa) and South32's wage negotiations reached a standstill over the weekend. Members of Numsa who work at the KwaZulu-Natal province's Hillside aluminium smelter are involved in the conflict. South32's suggestion that Numsa submits a monetary bid "across the board" was rejected by Numsa. The Commission for Conciliation, Mediation, and Arbitration oversaw the meetings (CCMA).

“So in this instance, South 32 is offering 3.1% increase across the board. And then on top of that it is offering a once-off increase of 4% which is paid for only one month in cash. South32 has not been fair in its approach to wage talks. They have already offered white collar workers, who earn much more than ordinary blue collar workers, 6.5% across the board, and what is worse is they have implemented the increase. This is unfair and it is a form of discrimination against employees,” said Numsa.

For the year ending in June 2022, South32 announced record underlying earnings of $2.6 billion and a free cash flow of $2.6 billion last month. Additionally, the business will provide a $1.3 billion special interim dividend to stockholders for the fiscal year 2022.

“We reject this with the contempt it deserves. They should be working to resolve the dispute, and it seems they are preparing for a strike. We have lodged a dispute with the CCMA, and there will be a meeting to deal with the dispute on the 15th and 16th of September. If the employer fails to put a meaningful offer on the table on that day, we will have no option but to apply to the Metals and Engineering Bargaining Council (MEIBC) for a certificate to strike,”added Numsa.

The CEO of South32, Graham Kerr, credited the "excellent financial performance and disciplined approach" to capital management for this unprecedented windfall, which accounted for 10 per cent of the company's market capitalization.