Metals settles

5 August, 2008

The Metals and Manufacturing MECA has been ratified with a 4% pay increase over 11 ¼ months.

The deal works out at an equivalent of 4.26% per annum and includes an increase in the redundancy notice period from four to six weeks and the abolition of youth rates for workers aged 16-18.

EPMU Metals advocate Stu Hurst says at a time of economic uncertainty the deal provides stability and security for members.

"It was an intense negotiation given the current economic uncertainty, however we took a pragmatic view, as did the employers, and we were able to secure a fair and reasonable wage movement with some added security on redundancy.

"There are 27 original employer parties to this MECA, and the campaign now begins to get subsequent parties signed up - ultimately we envisage getting the numbers up to around 200 employers.

"Having an industry-wide agreement like the Metals is good for everyone. It provides security for workers and employers, and ensures businesses compete on quality rather than on cheap labour. With the economy heading for a downturn that can only be a good thing."

The settlement was ratified with 82.3% support.

The Metals is New Zealand's largest multi-employer collective agreement, covering between 1500-2000 EPMU members in the manufacturing industry.