About

SEIFSA is a national federation representing 16 independent employer associations in the metal and engineering industries, with a combined membership of over 1 300 companies employing over 170 000 employees. The federation was formed in 1943 and its member companies range from large corporates to small and medium enterprises employing fewer than 50 people. The metals and engineering sector constitutes metal production, merchants and service centres, fabricators, heavy and light engineering.

SEIFSA has provided active support for employer associations and lobbied for policies that have improved the business environment in which its members operate.

Operates on the following levels:

History

1940
In the 1940s, South Africa's metal and engineering industry faced the challenges of World War II. The declaration of war led to the formation of the South African Federation of Engineering and Metallurgical Associations (SAFEMA) in 1941. With a focus on the war effort, the industry experienced significant growth and technological development. The sector played a vital role in producing armaments and equipment for the war, contributing to the Allied forces. The establishment of the Steel and Engineering Industries Federation of South Africa (SEIFSA) in 1947 marked a shift towards a more national representation. The war efforts led to the adaptation of engineering workshops into munitions factories, showcasing the industry's ingenuity. Post-war, the metal and engineering sector experienced a boom, with increased employment and a surge in the number of enterprises. This period saw the diversification of production, including the manufacturing of domestic appliances and radios. Despite these industrial advancements, the political landscape underwent a significant shift with the introduction of apartheid by the Nationalist government in 1948, marking a tragic chapter in South Africa's history.
1950
In the 1950s, contrary to expectations, the South African economy avoided the post-World War I depression, experiencing a smooth transition from war to peace due to international collaboration and financial aid. Post-war recovery led to increased spending, with South Africa focusing on industrial expansion and capital equipment. Despite a shortage of suitable labor, the metal industry maintained competitive prices and started exploring export markets. The Korean War in the early 1950s caused a global commodity shortage and price rise. Import restrictions were introduced, and a second Iscor steelworks opened in Vanderbijlpark in 1952. The industry expanded, with hundreds of new firms and a workforce surpassing 140,000. However, the era was marked by the Nationalists' segregation laws, such as the Black Labour Relations Regulation Act of 1953, reinforcing racial division in labor relations. The Industrial Conciliation Act introduced racial discrimination, preventing black workers from forming registered trade unions and contributing to job reservation policies that hindered technical training for black individuals.
1960
In the 1960s, South Africa entered the 'isolation years' due to the implementation of apartheid, but it was also a period of innovation and resilience for industry. Significant events included the Sharpeville massacre in 1960, leading to the banning of the ANC and PAC, South Africa's withdrawal from the Commonwealth, and Nelson Mandela's imprisonment in 1963. The country's isolation intensified with its exit from the International Labour Organisation and exclusion from the Tokyo Olympic Games in 1964. Despite economic challenges and emigration, the government supported local industries, leading to a boom in the economy and a surge in GDP from R5 billion in 1960 to R13 billion in 1970. The metal and engineering industry experienced remarkable growth, with SEIFSA expanding to 41 associations by 1966. The 'build the economy' policy spurred advancements, and the workforce in the industry grew to 265,000. The establishment of the Metal Industries Medical Aid Fund and the Metal Industries Group Pension Fund addressed employee welfare, while efforts to overcome the shortage of skilled labor involved national apprenticeship training programs. By the end of 1966, around 28,000 artisans and 6,000 apprentices were contributing to the industry's progress.
1970
In the 1970s, SEIFSA actively campaigned for changes to apartheid legislation, which obstructed the advancement of black workers. The Physical Planning and Utilisation of Resources Act, aiming to limit black workers in specific areas, faced criticism from SEIFSA for its impact on labor mobility. This legislation also hindered the progress of black workers into skilled job categories, aggravating the industry's existing shortage of skilled white workers. In 1972, an agreement with trade unions allowed black workers to move into higher-skilled positions, marking a significant shift. SEIFSA, recognizing the need for skilled workers, introduced a pilot immigration scheme in 1974, but it failed. Instead, the industry expanded opportunities for untapped domestic talent, extending advancements for black workers in 1976. The late 1970s saw economic changes and the Wiehahn Commission's inquiry into labor legislation. SEIFSA actively supported scrapping the dual labor relations system, allowing black trade unions in industrial council bargaining, and removing discriminatory provisions from industry agreements. Recommendations for full freedom of association, trade union registration, and phasing out statutory job reservation were endorsed by SEIFSA, contributing to efforts against apartheid's discriminatory practices.
1980
In the 1980s, South Africa witnessed a decade marked by increasing rebellion and the beginning of the end of apartheid. The government responded to township unrest with multiple states of emergency and tightened media censorship. Economic measures, including ambitious infrastructure projects and high tariffs, were implemented to boost the economy. SEIFSA, in 1980, welcomed two black trade unions as full members of the industrial council, signaling progress in industrial relations. The federation continuously worked to redefine jobs and skills components, making small victories against apartheid policies. However, challenges persisted, including unemployment and inflation. By 1983, the international recession affected South Africa's metal industry, and SEIFSA reflected on its four decades, emphasizing its role in forward-looking industrial relations and the elimination of racial concepts from agreements. The late 1980s saw intensified pressures on the Nationalists, internal unrest, and external sanctions, culminating in the industry's first national strike in 1988. President FW de Klerk's ascent marked a pivotal moment, setting the stage for negotiations and reshaping the nation's destiny.
1990
In 1990, Nelson Mandela's release marked a significant turning point for South Africa, leading to the unbanning of political parties, including the ANC, and the start of negotiations for a new constitution through Codesa. SEIFSA and industry trade unions reported progress in helping black employees buy houses. Despite economic challenges, escalating retrenchments, and a major strike in 1992, SEIFSA and Numsa sought long-term strategies for stability, skills, and productivity in the industry. The historic 1994 elections brought democracy to South Africa, and SEIFSA encouraged voter education. The years following saw transformative changes in business, labor, and skills development. Mandela's reconciliation skills garnered global admiration, and SEIFSA played an active role in post-apartheid developments, contributing to the Truth and Reconciliation Commission. The industry adapted to post-apartheid realities, and SEIFSA continued to advocate for its members, navigating economic shifts and evolving industrial relations.
2000
In the early 2000s, as South Africa entered the new century, SEIFSA and industry trade unions played a pivotal role in restructuring bargaining processes, moving away from confrontational stances to collaborative negotiations. This shift led to landmark agreements, including a two-year wage deal and the introduction of a 40-hour work week. Progressive initiatives, such as a collective bargaining levy and expedited dispute resolution, emerged. The era saw active participation in national dialogues, including discussions on labor law, skills development, and broad-based empowerment. SEIFSA became a champion of artisan training, contributing to the establishment of the Sector Education and Training Authority (Seta) system. Despite these efforts, challenges like global economic crises, increased competition, and xenophobic attacks presented hurdles, highlighting the complex landscape as the decade concluded. Yet, the nation's dream of achieving democracy, economic development, and racial integration persisted.
2020
Between 2014 and 2022, South Africa faced numerous challenges: increasing unemployment, industrial action, load-shedding, state capture, and the impact of the Covid-19 pandemic. The economy was struggling even before the pandemic, with growth barely above 1% in 2014 and plunging to -6.4% in 2020 due to lockdown measures. By 2022, growth rebounded to 2.2%. State capture and mismanagement of state-owned entities led to deteriorating services and economic setbacks, including significant load-shedding, which hampered growth. The energy crisis continued to be a major issue, requiring private and public partnerships for resolution. Inefficiencies in logistics and local government also burdened manufacturers with increased costs, reducing competitiveness. Despite some progress towards involving the private sector, reforms were slow. The metals and engineering sector, crucial to the economy, struggled with layoffs, closures, and competition from imports. Wage negotiations saw strikes, but a historic standstill agreement in 2020 froze wages to mitigate pandemic impacts. The sector’s bargaining council faced instability but began recovery efforts in 2020. The Zondo Commission exposed state capture, leading to high-profile arrests. Covid-19's devastation on lives, businesses, and employment underscored the need for economic resilience. With upcoming elections, the future remains uncertain, but South Africans remain hopeful and resilient.

Annual
Review

View a PDF version of the annual SEIFSA Annual Review which gives a report on the activities of the organisation over the past 3 years. The review is a succinct read which gives stakeholders an instant view of the organisation and its accomplishments.

BBBEE
Compliance Certificate

SEIFSA believes that Broad-based Black Economic Empowerment is an important aspect for the future development of South Africa and its economy.

SEIFSA is a Level Two (1) Contributor.

View our B-BBEE Compliance Certificate

Download

Consulting Services

Did you know that SEIFSA provides tailored Consulting Services to meet your company’s requirements. Please complete the form below and one of our consultants will get in touch with you shortly. 

 

× WhatsApp Us