SARACCA SARACCA_Seifsa75_Booklet | Page 47

Speaking of changes that have taken place in industrial relations over the years, Mr Trentini says that after the dawn of democracy, the confrontational style of bargaining that bedevilled relations between employers and employees for more than 50 years was replaced by greater mutual understanding and a more conciliatory bargaining approach. The new focus was on a speedier resolution of problems and the achievement of longer-term gains across a broader range of issues. Mr Trentini also says that when he joined the Federation, SEIFSA was the only voice representing the interests of companies operating in the metals and engineering sector: “We were the only employer Federation that sat across the table with trade unions.” Back then, Mr Trentini says, NUMSA was also coming to grips with occupying a seat at the Metal Industries Bargaining Council (MEIBC). Prior to this, NUMSA had been opposed to participating in the industrial council system that they perceived as being still part of the previous political dispensation. At the time, NUMSA had just emerged from a history of plant-level bargaining with individual employers. While trade unions amalgamated over the years, employer representatives mushroomed, contesting for the employer voice, but SEIFSA remains the largest Federation representing 23 employer Associations. “As SEIFSA, we acknowledge that long gone are the days when we were the only voice of the metals and engineering sector. This means that, over the years, we have had to ensure that SEIFSA constantly delivers on its members’ mandate to avoid losing them to the competition. It also means that we had to realise that relying exclusively on membership fees to survive wouldn’t work as some of our members had to shut down operations owing to subsidised competition from Asian economies that came about as a result of globalisation. “Against this backdrop, over the years the Federation has added to its service offerings, which initially consisted of Industrial Relations, Economics and Skills Development. In addition to its initial offerings, the Federation has now also added the Small Business Hub, Legal Services as well as Safety, Health, Environment and Quality services. The addition of these services has helped SEIFSA reduce its dependence of membership fees,” says Mr Trentini. Speaking of changes that have taken place in industrial relations over the years, Mr Trentini says that after the dawn of democracy, the confrontational style of bargaining that bedevilled relations between employers and employees for more than 50 years was replaced by greater mutual understanding and a more conciliatory bargaining approach The Collective Bargaining Model SEIFSA has been instrumental in shaping the industry collective bargaining model, which continues to enjoy the support of organised labour, the broad SEIFSA constituency and Government. . However, in recent years the model has come under enormous criticism, which was at times warranted but in many instances has not been thought through. He says: “While we can criticise the collective bargaining model, we must never lose sight of what the model has enabled the industry to achieve. We have unparralled pension, provident fund, sick pay fund and disability benefit funds worth in excess of R100 billion, established and administered by the social partners with no Government involvement.. These funds play a crucial role in social security issues, looking after employees whilst in service and one day when they exit the industry – and all this takes a massive burden off the State.” “This notwithstanding, we recognise that for the collective bargaining model to survive, it must be revisited, reconfigured and reworked in such a manner that key issues around how and where we bargain, the barriers to entry, for example, the entry- level wage rate structure and how we accommodate SMMEs are addressed. However, these must be addressed in a collaborative and joint problem-solving manner, with all alternatives considered, instead of simply saying the model no longer works and we must hold out until the unions come to their senses. ”In short, we need to tread cautiously in terms of how we break up collective bargaining and what we replace it with,” says Mr Trenini. Trade Unions With the turbulent economic conditions that followed the 2008/9 financial crisis, which saw a number of smaller businesses within the metals and engineering sector ceasing to exist as well as the impact of the 2014 four-week strike, Mr Trentini says that trade unions have come to realise the seriousness of the tough economic conditions currently facing the sector. With that understanding came the willingness to sit across the tabl