MIBCO wage and substantive negotiations update 21 November 2016

By sylviahammond, 21 November, 2016
MIBCO are pleased to advise that after almost 6 months of protracted negotiations, the RMI, FRA and NUMSA have finally signed a wage agreement for the next three years.

In order for this agreement to become binding on all employers in the Industry, and therefore enforceable by MIBCO, it has to be published in the Government Gazette by the Minister of Labour.

PLEASE NOTE :                 

There is no legal obligation on any Member of the RMI to implement these wage increases until such time as it is published and extended to non-parties in the Government Gazette. Members may however, subject to their own discretion, implement these increases in the meantime, as the new agreement will contain a set-off clause.

 There are two key elements to the wage agreement:

 The first is that minimum wages will be increased every year, for the next three years, by 7%.

 With the exception of Chapter III (component manufacturers), sector 6 (new and used vehicle dealers) and sector 5 (fuel retailers), all employees earning more than the minimum wage, will also receive an increase, which will be the monetary value of the 7% increase on the minimum wage for the relevant grades of employment. 

 Chapter III and sector 5 employers will be advised of the wage increases relevant to their sectors on the Industry, by separate Newsflashes. 

 Sector 6 increases will be restricted to minimum wages only.

 The second element relates to an increase in the threshold for wage adjustments. All employees earning more than the specified thresholds, will not be entitled in terms of the wage agreement, to any increases, except where employers grant such increases at their own discretion. 

The new thresholds will be R 183,144.33, R 194,288.66 and R 205,433.30 respectively, for the next three years.

 MIBCO will provide Members with a schedule of the new minimum wages, as well as guaranteed increase values, in due course but will, as usual, publish a wage booklet in the Automobil, that will assist Members in determining the relevant increases for the various categories of staff.

 (MIBCO website & newsflash)


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