About 600 employees belonging to the trade union, Numsa, have embarked on industrial action at Denel PMP in Tshwane, the company announced today.
State-owned ammunition manufacturer PMP continues with production as not all employees belong to Numsa. PMP has a total workforce of about 1300.
Denel said the dispute dates back to 2006 when Numsa alleged that its members at PMP were victims of salary disparities in that there was too wide a gap between the highest paid and lowest paid employees in a grade. Numsa further intimated that this gap was discriminatory in nature.
PMP management disputed this allegation. “The parties, however, agreed to engage the services of a remuneration and compensation expert to look into the matter. The result of the survey was that the gap between the lowest paid employee and the average of the grade was reduced,” Denel said.
“Following this industrial action, Denel has made a revised offer to the union representatives significantly reducing the gap to lower than benchmark. Any residual gap would be in respect of experience, qualification, etc. Numsa has put a counter proposal and we are in constant communication.
“Denel considers the Numsa industrial action as unprotected and regrettable because it contradicts a conciliatory process that gave rise to a ruling by the CCMA in November 2012 to resolve the issue amicably. The company regrets the decision taken by the union leadership and states clearly that its doors remain open for continuing discussions,” Denel said.