Steel company told it cannot cut salaries without proper discussions with workers

The company applied for an urgent interdict to prevent workers from striking after salary cuts, but the court dismissed the application.

Numsa says the management of Macsteel has made unilateral changes by reducing the salaries of employees by 20%  without consulting them.

Workers have been on a strike since the 28th of May.

Numsa spokesperson, Phakamile Hlubi-Majola, says Macsteel applied for an urgent interdict on the 29th of May in the hope that the Labour Court would block the strike

"This tactic was used to frustrate and undermine the strike. Macsteel has been operating at 50% capacity since the lockdown and it argued in court that the salary reductions were necessary given the severe impact that the Covid-19 lockdown has had on its revenue, and therefore it took a decision to cut salaries for the months of May, June and July without the workers’ agreeing to this," says  Hlubi-Majola.

She says the Judge found that the unilateral decision to reduce salaries for the months of May, June and July by 20% constituted a change in terms and conditions of employment.

"It vindicates us and the rights of our members to strike," says Hlubi-Majola.

She adds they are ready for fresh talks.

"We hope that following this judgement, management will realize the error of their ways and engage meaningfully with us on the challenges they are facing financially," concludes Hlubi-Majola.