Neasa warns small employers of rising labour costs as metal industry wage battle intensifies

SOUTH Africa's metal and engineering sector is bracing for another fierce battle over wages after the National Employers’ Association of South Africa (Neasa) warned that the extension of the Metals and Engineering Industries Bargaining Council (MEIBC) Main Agreement could dramatically increase labour costs for thousands of small and medium-sized businesses.

- SIPHELELE DLUDLA

The warning comes as wage increases contained in the industry's three-year collective agreement take effect from 1 July 2026, raising minimum wage rates across multiple occupational categories in the sector.

The agreement, concluded between employer associations affiliated to the Steel and Engineering Industries Federation of Southern Africa (Seifsa) and trade unions including Numsa, Mewusa, NUM, Saewa and Uasa, provides for increases ranging from 5% to 6% for the final year of the deal.

Under the agreement, the minimum hourly wage for workers in the lowest-rated category of the main engineering schedule will rise from R66.93 to R70.95 per hour from July 2026.