AGREEMENT NO. 2 OF 2003

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1 AGREEMENT NO. 2 OF 2003 COLLECTIVE AGREEMENT ON DISPUTE RESOLUTION LEVY AND REGISTRATION OF EMPLOYERS IN THE CHEMICAL INDUSTRY 1. SCOPE OF APPLICATION OF THIS AGREEMENT The terms of this Agreement shall be observed throughout the Republic of South Africa and binds, w ith effect from the date referred to in clause 7: - (a) (b) (c) (d) The employ er s organizations w ho are party to the National Bargaining C ouncil for the Chemical Industry ( the C ouncil ) and their members: The employ ers who are not members of the employer s organizations referred to in (a) abov e, but w hose activ ity or activ ities fall w ithin the registered scope of the C ouncil; and The employ ees of any employ er referred to in (a) or (b) above w ith respect to their w ork w ithin any activity falling w ithin the registered scope of the C ouncil, w hether or not they are members of a trade union party to the Council. N otw ithstanding the prov isions of clauses1 (a), 1(c), 4.1 and 4.2, the terms of this agreement shall not apply to employ ers and employees covered by the ex isting C ouncil collectiv e agreement on lev y collection. 2. OBJECTIVES The objectiv es of this Agreement are: (a) (b) to prov ide, by w ay of dispute resolution levy, the funds required by the C ouncil to carry out its functions under it constitution, the Labour Relations Act no: 66 of 1995 ( LRA ) and other legislation; to prov ide for the compulsory registration of employers w ho fall w ithin the registered scope of the C ouncil.

2 3. THE PARTIES TO COUNCIL NOTE THE FOLLOWING 3.1 The C ouncil has been accredited by the C ommission for C onciliation, Mediation and Arbitration in terms of section 127 of the LRA to perform dispute resolution functions w ithin the registered scope of the C ouncil. 3.2 Section 28 of the LRA prov ides that bargaining councils must prev ent and resolv e labour disputes and shall perform dispute resolution functions referred to in section Any employ er or employ ee party to a dispute w ho is not party to the C ouncil or a member of a party to the C ouncil but who falls within the registered scope of the C ouncil must refer such a dispute to the C ouncil for resolution in terms of section 51 of the LRA. 4. DISPUTE RESOLUTION LEVY 4.1 Ev ery employ er referred to in clauses 1(a) and (b) abov e shall, in respect of ev ery employ ee referred to in clause 1(c), contribute to the Council dispute resolution lev y ( levy ) of R3.00 per month, to be paid equally by the employ ers and employ ees. 4.2 An employ er comply ing with clause 4.1 must deduct from the w ages and/or earnings of each employ ee referred to in that clause R1.50 per month. 4.3 An arbitrator hearing a dispute regarding failure of an employ er to pay the lev y may, if finding the employ er guilty, fine the employ er up to the applicable amount below : N o previous failure to comply w ith a collectiv e agreement of the C ouncil A prev ious failure to comply in respect of the same prov ision A prev ious failure to comply w ith a collectiv e agreement of the C ouncil w ithin the prev ious 12 months or two prev ious failure to comply in respect of the same provision w ithin three y ears Three prev ious failures to comply in respect of the same prov ision w ithin three y ears Four prev ious failures to comply in respect of the same prov ision w ithin three y ears R100 per employee in respect of whom the R200 per employee in respect of whom the R300 per employee in respect of whom the R400 per employee in respect of whom the R500 per employee in respect of whom the 4.4 Whenever an employ er pay s any sum of money due to the Council in terms of clause 4.1 in any manner other than in cash and such pay ment is not honoured for any reason whatsoever then, for purposes of section 33A(9) of the LRA, it shall be deemed that the employ er had not paid the amount and interest shall be pay able as prov ided in that section read with this clause 4.

3 4.5 An employ er w ho is charged interest in terms of section 33A(9) of the LRA regarding the portion of the amount that he is entitled to deduct from an employ ee s w ages in terms of clause 4.2 must not deduct that interest from the employ ee s w ages. 4.6 Any interest due to the C ouncil in terms of section 33A(9) of the LRA shall be: pay able on demand; and compound interest, and therefore unpaid interest shall itself accrue interest on a monthly basis. 5. COMPULSORY REGISTRATION OF EMPLOYERS 5.1 Ev ery employ er referred to in clause 1(a) or (b), unless he has already done so, shall in respect of each place at w hich he carries on business inv olv ing an activ ity falling w ithin the registered scope of the C ouncil, complete a statement in the form of Annex ure B to this Agreement and lodge such statement w ith the General Secretary of the C ouncil, not later than 30 day s after the date (a) (b) on w hich this Agreement becomes binding in the case of any place(s) of business w hich is operating at that date; or of the commencement of business at any such place. 5.2 Ev ery employ er shall, w ithin one month after such change, notify the General Secretary of any change in contact details of the business. 5.3 An arbitrator hearing a dispute regarding failure of an employ er to register in terms of this clause may, if finding the employer guilty, fine the employ er up to the applicable amount in the table in clause 4.3, w hich shall apply mutatis mutandis. 6. EXTENSION OF THIS AGREEMENT TO NON-PARTIES 6.1 The C ouncil intends to request the M inister of Labour to ex tend this Agreement in terms of section 32 of the LRA to the non-parties referred to in clause 1 from a date to be determined by him for a period of one y ear.

4 7. DATE ON WHICH AGREEMENT SHALL BECOME BINDING 7.1 This agreement shall become binding on the date from w hich the M inister of Labour in terms of section 32 of the LRA ex tends this Agreement to non-parties falling w ithin the scope of the C ouncil, and shall remain in force for the period that the M inister ex tends the agreement to such non-parties. 8. DISPUTE RESOLUTION 8.1 If there is a dispute about the interpretation or application of this Agreement any party may refer the matter to the Council for resolution in terms of the dispute resolution procedure of the C ouncil. 8.2 The C ouncil may enforce the prov isions of this Agreement in terms of section 33A of the LRA.

5 ANNEXURE B [Specified in clause 5.1 of the Agreement on a Dispute Resolution Lev y and Registration of Employ ers in the Chemical Industry ] The General Secretary Date:... The N ational Bargaining Council for the C hemical Industry (NBC C I) P O Box 61418, M arshalltow n, 2107 Dear Sir / M adam REGIST RAT ION AS EMPLOYER IN T HE CHEMICAL INDUST RY In accordance w ith clause 5.1 of the N BC CI s Agreement on a Dispute Resolution Levy and Registration of Employ ers in the C hemical Industry I hereby furnish the follow ing particulars in connection w ith this business: 1. Name under which business is carried on In case of Company or Close Corporation: Name of company / CC:.. Registration number:.. 3. Telephone N o. (including dialling code).. Fax N o. (including dialling code)... Address: Address of head office (where applicable) Nature of business Date on w hich trading, w ith respect to an activ ity falling within the scope of the C ouncil, commenced N umber of employ ees w ithin the following sectors (see attached NBC C I scope of registration) as defined in Schedule 1 of the N BC C I s Constitution. Sector Number Sector Number Fast Moving Consumer Goods Explosives Glass Speciality Chemicals Fertiliser Base Chemical Surface Coatings Petroleum Pharmaceutical 7. Name of employer's organisation of which I am a member.....

6 T HIS DONE AND SIGNED AT ON THIS DAY OF 2003 ON BEHALF OF THE EMPLOYERS ORGANIZATIONS PARTY ORGANISATION NAME SIGNATURE Surface Coatings Industry Employers Association National Fast Moving Consumer Goods Employers Association Explosives Industry Employers Association National Speciality Chem icals Em ployers Association. Fertiliser Industry Employers Association Glass Industries Employers Association. Labour Affairs Association of the Pharmaceutical Industry National Base Chemical Employers Association. National Petroleum Employers Association.

7 ON BEHALF OF TRADE UNION PARTIES TRADE UNION NAME SIGNATURE Chemical, Energy, Paper, Printing, Wood and Allied Workers Union. United Association of South Africa Solidarity South African Chemical Workers Union.

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