On Friday, the National Union of Metalworkers of South Africa (Numsa) announced that it had reached an agreement with Bell Equipment. The agreement states that Bell Equipment will employ 100 individuals on a permanent basis who had been working under labour brokers for the past decade.
Earlier in the week, Numsa had threatened to go on strike due to unresolved talks with Bell Equipment. One of the main points of contention was Bell Equipment’s utilization of labour brokers. As part of their demands, the union insisted on a housing allowance of R2,000, a transport allowance of R1,000, a profit-sharing scheme for all workers, and a bonus payment of R2,000 each, untaxed, for this round of negotiations.
In their statement, Numsa highlighted that these 100 workers would now receive the same benefits and compensation as other permanent employees at Bell Equipment. They emphasized that the union had been at a deadlock with the company over the non-payment of bonuses and the exploitation of workers through labour brokers.
According to Numsa, the workers who were employed through labour brokers earned nearly half of what permanent employees earned. Additionally, their employment was based on a month-to-month contract, which prevented them from accessing basic financial services such as home loans, vehicle financing, and cell phone contracts.
With this new agreement, the 100 workers will gain access to medical aid and an improved provident fund. Numsa believes that this will significantly improve the quality of life for these workers, providing them with job security and the ability to support their families with dignity. The union views this as a significant accomplishment. Numsa said the conciliation process at Bell continued because all the other demands which workers made would be discussed by the executive management at a board meeting on August 15.
The union said the Metals and Engineering Industries Bargaining Council would give them feedback on the demands in August. 16.