BUSINESS NEWS - South African unions said on Tuesday they had agreed on a three-year wage deal for engineering workers, ending weeks of difficult negotiations and averting an industry strike.
Unions had threatened a strike last month after talks over their demand for wage hikes of 15% across the board in the metal and engineering sectors became deadlocked.
They have now agreed to a deal that is expected to see workers get a 7% increase in 2017, 6.75% in 2018 and 6.5% in 2019, the employers association South African Engineers and Founders Association (SAEFA) told Reuters. It is a former affiliate of the Steel and Engineering Industries Federation of South Africa (SEIFSA), which represented employers in the talks.
The Solidarity union would only say that wage increases would be between 6.5 and 7%. Solidarity and the National Union of Metalworkers of South Africa (Numsa), the two biggest unions involved in the talks, said they would sign the agreement with SEIFSA on Wednesday.
Wage deal expected to see engineering workers get 7% increase
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