From 1 July, SA steel and engineering workers received a pay increase of about 7%, which will be followed by a 6% increase in 2025 and another 6% in 2026. However, a trade union and an employer body are unhappy about the agreement.

The already fragile labour relations in SA's steel and engineering industry are being tested further, with a key trade union and employer body not accepting or even endorsing to their members a recently concluded pay rise offer.

The conclusion of the agreement, which runs from 1 July 2024 to 30 June 2027, paved the way for a strike to be avoided over the next three years.

The last time the steel and engineering industry faced a strike was in October 2021, when steelworkers downed tools for nearly three weeks. The strike cost workers R200-million in lost wages as steel companies implemented a "no work, no pay" policy, and cost the industry more than R500-million in lost revenue.

Some trade unions and employer bodies in the sector struck a deal on a new pay rise agreement, which replaced an old one that ended on 30 June. The new agreement was endorsed by the National Union of Metalworkers of SA (Numsa), which speaks for the majority of workers in the industry, with the trade union describing it as "progressive" because workers will walk away with above-inflation pay increases.

From 1 July, workers (especially the lowest-paid with the least skills) have secured a...