Wage negotiation success in the chemical industry – lessons to be learnt for SA’s flailing unions

The deluge of labour unrest in South Africa at the moment is beginning to carry with it the whisperings of a new era of labour-employer interaction in the country. The ramifications and norms that were introduced by the five month long platinum sector strike, have created a dangerous quagmire of practices that can only have a dire impact on the economy of the country. Essential to the long-term success of South Africa, especially in the climate of the burgeoning economic race for Africa, is economic growth and stability. And with labour unions holding the economy at ransom indefinitely, we simply won’t be able to take part in this growth like we could and should. In amongst the concern and uncertainty about the future of labour relations in the country, is a good news story – the example set by trade unions and employers reaching a two-year wage agreement for the chemical industry. Marius Croucamp, the industry Head at Solidarity expands on the successes of this negotiation, why it went along smoothly and the lessons that can be learnt from it. – LF

ALEC HOGG:  Well, a two-year wage agreement has been reached by Trade Unions and Employers in the National Bargaining Council for the chemical industry, bringing much relief to an economy that is prone at the moment it seems, to lengthy strikes.  Marius Croucamp, the industry Head at Solidarity is with us, in the studio.  It’s nice to have some good news Marius, particularly in your field and from a Trade Union perspective.  There hasn’t been a whole lot of that lately.

MARIUS CROUCAMP:  No, certainly not and we’re delighted that we were able to reach such an agreement in a fairly quick space of time, with all the Trade Unions and all the employers, without much drama.

ALEC HOGG:  Why?

MARIUS CROUCAMP:  There were a couple of reasons for that.  The industry is mature.  We’re dealing with a highly skilled workforce.  We have Unions that are long established, in that Bargaining Council, and there’s a lot of engagement between labour and the Employers outside of the Bargaining Council.  By the time, we’ve reached the bargaining range and the bargaining time, we know exactly where we want to go and that is why we were able to reach such agreements so quickly.

ALEC HOGG:  Another key point you’ve just made there is that there’s a lot of relationship between Employers and Employees, outside of the Bargaining Council, so communication.

MARIUS CROUCAMP:  Communication as well as knowing exactly what the issues are.  Many times smaller issues manifest themselves in wage negotiations and the fight might be about something that is not really on the table, so we are able – in the chemical industry – to iron out those issues before we get to the bargaining stage.

ALEC HOGG:  Who are the companies who are involved here?

MARIUS CROUCAMP:  The big companies are Sasol, BP, Petrol SA, and a couple of others.

ALEC HOGG:  And it is a different approach to what we seem to be seeing in other industries.  Why would that be?

MARIUS CROUCAMP:   Firstly, the Bargaining Council is a voluntary one.  Nobody is forced to go and bargain there, so the parties are there by agreement and they want to be there.  Secondly, the industry, as I’ve said, is highly skilled.  At the workforce, they focus on their work.  There’s a lot of focus on training and obviously, their relationship building, the agreements that are reached at plant level as well, they take care of all of those other issues that might become a problem later on.

ALEC HOGG:  Within the Solidarity setup, you must be the guy with the cushy job because it sounds to me like your colleagues are having a much tougher time of it, particularly with what’s going on around the NUMSA strike.

MARIUS CROUCAMP:  Certainly, there are a lot of dynamics that side, in the current metal industry strike, the mining industry, and there’s a lot of drama.  It’s a sad story that has happened there but I think the good story in chemical is that there are no politics within the Unions.  They focus on their work.  They don’t bring any party politics into the bargaining arrangement, and that is very important for us.

ALEC HOGG:  And these are Unions that go across all racial lines, as well.

MARIUS CROUCAMP:  All racial lines, definitely, and all the different industries as well.  They don’t just organise in chemical and they belong to different federations as well.

ALEC HOGG:  But just getting back to the labour issue, generally, because clearly you talk to your pals, your colleagues in Solidarity.  How are you guys feeling about the way the country is going?

MARIUS CROUCAMP:  We are very concerned.  Firstly, what’s happening now is we are sabotaging our own economy as South Africans.  We are destabilising the growth path.  We are growing negatively.  We want to create jobs.  All of us want to see job creation.  This is not going to happen in the current environment.  Such labour unrest or unrealistic demands, definitely drives away investors, so we are gravely concerned and we are doing everything in our power to make sure that we can help and assist the economy, at this stage.  For example, in the metal industries we’ve elected not to go on strike.  We are negotiating with the Employers, and specifically on these points our members have said, “We don’t want to harm this country.  We want to see economic growth.  We want to see job creation and the only way we can do that is to bargain in a mature manner.”

ALEC HOGG:  How many members do you have, at Solidarity?

MARIUS CROUCAMP:  140.000, in all industries, in South Africa.

ALEC HOGG:  And in the metal sector?

MARIUS CROUCAMP:  In the metal sector, we negotiate on behalf of 23.000 artisans.

ALEC HOGG:  That’s a lot of people.  Can they keep the wheels going, if NUMSA is out?

MARIUS CROUCAMP:  In some instances, yes.  The problem being, especially reported this morning that there’s a lot of intimidation, not just at the different factories but at the taxi ranks, so companies are working on skeleton staff.  Some have to close because of safety concerns and there are other tactics that we employ, together with the Employees, to keep production going.  Obviously, for safety reasons we cannot disclose that.

ALEC HOGG:  At Eskom, do you have much of a representation there?

MARIUS CROUCAMP:   Certainly we do, yes.

ALEC HOGG:  And do you have any feedback on what’s going on there at the moment?

MARIUS CROUCAMP:  At this moment, there is a Labour Court Interdict.  The Unions are not allowed to strike in Eskom.  I think it’s essential for the continuation of power, which is critical for the economy, and we just hope that the bargaining process there will give us a result.

ALEC HOGG:  And taking SISA to Court last week, to allow your guys to go to work: has that been welcomed by the employers?

MARIUS CROUCAMP:  Certainly yes.  I think it’s a new dynamic in our environment, where the right to work is as strong as the right to strike, and those people who want to continue to work – let them work.  We can never allow the situation where the right to strike supersedes that of the right to strike, or is stronger than the right to work.

ALEC HOGG:  Fascinating.  Marius Croucamp is with Solidarity, he’s the Head of Industry and as you’ve heard there, some very good news if you are involved with Sasol because they are keeping on going.  All the Unions involved there have come together with an agreement.  It’s eight-and-a-half percent.

 

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