Car makers under threat

A strike over wages may hit vehicle manufacturers if a deal is not reached soon, the National Union of Metalworkers of SA (Numsa) said on Wednesday.

“Our members are ready and agitated to use their mobilisational power to withhold their labour power until their demands are met,” the union said in a statement.

Numsa said it had been involved in protracted wage negotiations with the Automobile Employer Organisation (AMEO) for a wage increase for 2010 “as per the national bargaining agreement in line with the Labour Relations Act”.

The first phase of the negotiations began in the middle of June while the second phase was concluded at the end of June.

“The last phase of the negotiations which culminated in a deadlock happened on July 15 to July 16,” Numsa said.

Its demands made to AMEO were “consistent with the Living Wage campaign of our federation, Cosatu”.

The union was demanding a 20 percent wage increment across the board as well as a one year bargaining agreement.

It was also demanding six months full paid maternity leave and the banning of labour brokers.

“These demands by our manufacturing workers are consistent with the African National Congress (ANC) electoral commitments of creating decent and sustainable livelihoods.”

Numsa said AMEO should be conscious of the fact that the 2010 World Cup was over “and our demands will no longer be muzzled by the ruling elites in the interest of the country or for some uninvited foreign football spectators”.

AMEO spokesman Chris Thexton confirmed that the current round of negotiations had reached a deadlock.

“Our facilitators are now required to render an opinion on which party is the most reasonable and both parties will consider this opinion.”

He said AMEO and the union would meet again in early August.

“We’re hoping for a settlement so that a strike can be averted,” he said.

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The Competition Commission has referred its findings of price fixing against 28 bicycle wholesalers and retailers to the Tribunal for adjudication.

The firms face the allegation that they colluded to set the wholesale and retail prices of cycles and accessories. In addition, they are alleged to have excluded competitors from the market.

Wholesalers sent retailers a price list with the wholesale price and the recommended retail price on a regular basis. The recommended retail price includes a mark-up of 35 percent for bicycles and 50 percent for accessories. In turn, the ceiling on mark-ups also determined the profit/margin that retailers could make on cycles and accessories.

Bicycle retailers colluded to exclude competitors like internet retailers from the market. The stratagem employed was to ask the wholesaler to sell to independent retailers at a higher price. The Competition Commission believes this conduct is likely to harm competitors and consumers.

The Commission has asked the Tribunal to levy an administrative penalty of 10 percent on the annual turnover of each of the firms involved.

The firms facing these allegations include retailers Fritz Pienaar Cycles, Cycle Lab, Hotspot Cycles, Maverick Cycles, Dunkeld Cycles, Summit Cycles, Bester Cycles, Johnson Cycle Works, Salojee’s Cycles, West Rand Cycles, Bowman Cycles, Winners Cycles.