SMEs Battle Over Wage Increase Concerns

Updated on 4 August 2014

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Small businesses battle it out over wage increase concerns


Small businesses in the metals and engineering sector will continue with their lockouts of workers until the matter of affordability of wages is addressed, reports Business Day.

The National Employers’ Association (Neasa), which represents small businesses in the sector, said no attention was paid to its demands. The demands include a lower wage increase for small businesses, an improved exemption policy and a lower minimum wage for workers entering the industry.

“Our members cannot afford the 10%, and this concern has simply been ignored,” said Sya van der Walt, Neasa spokesman.

Neasa is a rival of the Steel and Engineering Industries Federation (Seifsa), which represents mainly large companies in the sector.

Business Day reports that Seifsa this week agreed to an annual wage increase of 10% over the next three years, ending a one-month strike by unions including Numsa.

See Also: The Impact of Wage Increases on SMEs

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