2017 MEIBC Negotiations Done – The Way Forward

To All Industry Related Businesses

Notwithstanding the negotiations between the parties to the MEIBC, an agreement was struck today between certain SEIFSA affiliates and NUMSA, accompanied with other unions. Please click here to view the agreement. This agreement attempts to settle the wages in the industry for the next three years. However, this agreement is poorly concluded, where employers merely give a lot and not gain any business surety, which is subject to an array of disputes and litigation.

It is important to note that a mere 13% of employers within this industry are covered by this agreement.  It has already been communicated to CEO that SEIFSA and these unions are contemplating to extend this agreement to the rest of the Industry / non-parties like ourselves. Extension of this agreement will not be possible and it will remain a part-party agreement. CEO is of the opinion that a better agreement may still be negotiated between the parties for a sustainable industry for the future.

As an actively involved employers’ organisation and party to the MEIBC, CEO does recognise that employees do deserve to get their fair increases; as our members, being fair employers are also keen to implement such fair increases, for the purposes of ensuring labour- and economic certainty and stability within the industry. It is therefore unfortunate that SEIFSA and these unions negotiated an unsustainable agreement; with not only an unaffordable increase model, but also not acknowledging and rectifying the historical mistakes of an industry hostile bargaining council.

Up to this point any increases since the 1^st of July 2017 were delayed by the ongoing negotiations. CEO is also of the opinion that the current agreement is not the best attempt by the parties to conclude the main negotiations. Currently, the main employer grouping, which includes CEO, does not support the principles of this agreement. The effect hereof is that a lot of industry uncertainty is created by this agreement.

THE WAY FORWARD

CEO is nonetheless canvasing our members to confirm their mandate: Should we as CEO support this agreement and become party to it, or decline the current agreement?

In the absence of signing an agreement, what are our members to do?
The Answer: In the light of the fact that this agreement currently only binds the signatory parties to the agreement and that the successful extension of the agreement to non-parties are highly unlikely as the signatories lack the necessary representativeness within the industry without CEO signing the agreement. CEO members are currently free to implement their own fair increases (if any) of what they can afford and are willing to pay their employees, either back dated to the 1^st day of July 2017 or not. It is however important to note that whatever increases are implemented should be done consistently across the board within your business.

Kindly confirm your mandate by responding to this e-mail.

It is important that you as our valued member confirm your mandate. CEO’s mandate is formed out of the feedback we receive from you, our members. CEO always endeavour to act in the best interest of our members and therefor want to stress the importance of your active participation in these negotiations.

CEO will continue to keep our members abreast of developments herein. If no mandate is received, no agreement will be concluded with the trade unions without prior communication and confirmation of mandate.