16/11/2022
NUMSA SIGNS WAGE AGREEMENT IN THE MOTOR SECTOR
4 November 2022
Press statement
The National Union of Metalworkers of South Africa (NUMSA) has signed the wage agreement in the motor sector today. This is a sector which covers over three hundred thousand workers who fall under the Motor Industries Bargaining Council (MIBCO). The sector covers employees who are working for petrol garages, car dealerships vehicle body builders, and component manufacturing companies. The wage deal is broken downs in the following way:
1. Component manufacturers (Chapter III):
Wage and salary increases are based on actual rates of pay across the board and broken down as follows:
Year 1 the increase is 7,5%, for year 2 it is 6% and year 3 it is 6%.
The RMI will implement the increase from the 1st of September 2022 which means there will be backpay for workers in Chapter III.
2. Garage Workers (Sector 5)
Wage and salary increases in the case of Sector 5, shall be subject to the Minister of Mineral Resources & Energy approving and implementing a retail margin adjustment to compensate fuel retailing establishments for such additional wage adjustment(s) during the duration of the agreement. Wage and salary increases will be based on the current wage model, for the following periods:
Forecourt Attendants increases will be broken down in the following way:
Year 1 is 7,5%, year 2 is 6%, year 3 is 6%.
Cashiers increases will be broken down in the following way:
Year 1 is 5%, year 2 is 4% and year 3 is 4%.
Increases for Chars will be broken down in the following way:
Year 1 is 5%, year 2 is 5% and year 3 is 5%.
Provided that if the Minister of Mineral Resources and Energy adjusts and allocates additional retail margin (i.e. additional to that which is required to implement the increases agreed to above) to compensate sector 5 businesses for the payment of wages and salaries for forecourt attendants during year 2 and 3 of this agreement, sector 5 employers will add an additional 1% to the agreed forecourt attendant increases above, for year 2 and year 3, which will adjust the increase of the second year and the third year to 7%.
For sector 5 all increases will be effected from the time that petrol margins are adjusted by the minister of the Department of Mineral & Energy.
3. All other sectors (Excluding Chapter III)
Except for sector 5 (forecourt attendants, cashiers and chars) and sector 6, across the board but based on the current wage model, wage and salary increases are based on minimum rates of pay, with all employees earning in excess of minimum rates of pay, receiving guaranteed monetary increases equal to the value of the increase in the minimum rate of pay for the respective and relevant grades of pay, for the following periods:
Year 1 is 6,5%, year 2 is 5% and year 3 is 5%.
4. Sector 6 (Car dealerships)
Wage and salary increases are based on minimum rates of pay only, for the respective and relevant grades of pay, for the following periods:
Year 1 is 6,5%, year 2 is 5% and year 3 is 5%.
The duration of the agreement will be from the date of publication and extension thereof to non-parties by the minister of employment and labour with an expiry date of 31 August 2025.
Besides securing increases for workers in the sector, NUMSA also fought for the wage threshold in MIBCO to be increased. The minimum rate of pay was at R188 000 per annum. Now, because of the signing of this agreement, the wage threshold will be adjusted in line with the Basic Conditions of Employment Act and will be set at R224 080 per annum.
The union’s most urgent task now is to ensure that the processes of endorsement of the agreement within MIBCO are speeded up and, also to approach the Department of Labour to gazette and extend it to non-parties. We call on the minister to ensure that the agreement is speedily gazetted so that it can be extended to non-parties, so that there is no time that is wasted where workers will lose their deserved increases, whilst we have already signed the agreement.
We want to thank our members for their patience because of the lengthy talks, and we also want to thank our officials, who worked tirelessly to resolve this round of wage talks. It was not easy to secure this agreement given the challenges facing the sector, caused in part, by the impact of the Ukraine/Russia war. But despite this, NUMSA continues to fight and secure improvements in benefits and conditions for the working class.
Aluta continua!
The Struggle continues!
Issued by Irvin Jim
NUMSA General Secretary
For more information, please contact:
Phakamile Hlubi-Majola
NUMSA National Spokesperson
0833767725
[email protected]
NUMSA Head Office number: 0116891700
NUMSA page: https://www.facebook.com/NumsaSocial
NUMSA Twitter account:
NUMSA Website: https://numsa.org.za/
(Picture of NUMSA National Sector Co-ordinator for Motor cde Mduduzi Nkosi and NUMSA General Secretary Irvin Jim). 👇🏾
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