Almost a month of labour unrest at South Africa’s largest ammunition production facility is over.
Denel PMP reached a wage agreement with workers represented by Numsa at its Pretoria West plant and all workers returned to work today.
The industrial action, which did not affect production, started on January 23. About 600 of the total PMP workforce of 1 300 were involved in the work stoppage.
When the strike started Denel said the dispute dated back to 2006 when Numsa alleged its PMP members were victims of salary disparities with too wide a gap between the highest and lowest paid employees in a grade. The trade union also intimated this gap was discriminatory in nature, an allegation disputed by PMP management.
A remuneration and compensation expert was asked to look into the allegation. His survey showed the gap between the lowest paid employee and the average of the grade was reduced.
Denel then made a revised offer to union representatives reducing the gap to lower than the benchmark. Any residual gap would be with regard to experience and qualifications among others.
Denel said the union and PMP management were to be thanked for their efforts in reaching a workable solution. It hopes the new agreement will be the foundation for future good labour relations at the ammunition producer.
