20 th June 2014 NATIONAL UNION OF METALWORKERS OF SOUTH AFRICA. 153 Bree Street (Cnr. Becker) P.O. Box Newtown, Johannesburg EXCOM 2023

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1 NATIONAL UNION OF METALWORKERS OF SOUTH AFRICA 153 Bree Street (Cnr. Becker) P.O. Box Newtown, Johannesburg EXCOM Tel: (011) Fax: (011) OCCB Engineering Sector Co-ordinator 20 th June 2014 TO : REGIONS ATT: REGIONAL ORGANISERS Please see below the latest summary of what took place in the wage negotiation dispute meeting which was held on the 20 th June 2014 at Benoni Lakes. Parties agreed to categorize the demands into four: Non Cost issues On Cost issues Matters to be referred to the existing structures Wages and related matters. Due to the coming RECs we have decided to put up this report for the RECs to discuss it and mandate their bargaining delegation for last coming dispute meeting. We further urge the comrades to discuss the bottom or settlement position as we will be approaching the last dispute meeting next week on the th June 2014, taking to account that we have not moved even in one item. 1

2 Below is consolidated report of all NUMSA demands and further attached issues that have been referred to existing committees WAGE AND SUBSTATIVE ISSUES NEGOTIATIONS SUMMARY DEMANDS EMPLOYER S RESPONSE NUMSA DEMANDS FACILITATOR S PROPOSAL Wages (SEIFSA OFFER) For 2014 an increase by 7% at Rate A to 8% at Rate H. Total Cost to Employment Effective from the date of signature of the settlement Agreement. We demanded 15% across the board. No condition and no to cost to employment. Labour: 11%, Employers: 8% Wage Increases to be applied on actuals for all scheduled employees. For 01 July 2015 an increase base on published Statistics SA CPI April year on year (A wage spread increase ranging from 0% at Rate A to 1% at Rate H) For 01 July 2016 an increase base on published Statistics SA CPI April year on year 2

3 (A wage spread increase ranging from 0% at Rate A to 1% at Rate H) (SEE ATTACHED ANNEXURE A) (SEIFSA & NEASA) Reduction of 50% on all existing minimum scheduled wage rates must be introduced and applied to all new entrants. Any employee earning in excess of 20% of the scheduled rates should receive less than the agreed upon wage increase Back dating applicable on the date of signature. (NEASA OFFER) Offer is based on actuals and we offer 7% for 1 st year and CPI for 2 nd & 3 rd Year. Subject to their constituency approval. (Border Industry Association) Offer 7% on condition that there is an interim amended Exemption Policy. One year agreement No condition Backdating from the 01 st July 2014 Address this at the IPF MAC along with Regional Dispensation Interim arrangement for regional dispensation to remain negotiable Apply increases on actuals it at their discretions or through 3

4 Duration of the Agreement 3 year multi-year agreement must be concluded and apply CPI as at April in Year 2 & 3.(i.e.2015 & 2016) ( Border Association agreed on one (1) year agreement One year agreement effective 01 st July 2014 to 30 th June Year Agreement Scope of the agreement (Referred) Prepared to investigate extension to other sectors. Refer to Manco and then Stanco. Stanco will be required to make a recommendation to Manco. Extend the scope of the council to include Scrap Metals, Mining and Construction. Refer to Stanco Labour Brokers It is proposed that labour brokers who do not meet the minimum requirement in terms of registration with the Bargaining Council and MIBFA will be deemed to be non-compliant labour brokers and shall be liable for prosecuted by the Bargaining Council. Total ban or abolish labour brokers in the industry. it at their discretions or through Employees engaged by a registered labour broker shall be entitled to all terms and conditions of employment as contained in the Main Agreement, including all Social Security Benefits from day one of employment. It is proposed that employees engaged by a labour broker will be treated no different to employees employed by an employer. 4

5 It is proposed that on promulgation of the Amendments to the Labour Relations Act of 2012, the Main Agreement will be aligned to ensure compliance with the relevant provisions applicable to Temporary Employment Services as contained in the Labour Relations Amendment Act of Short Time It is proposed that Section 7 of the Main Agreement will be amended to provide that an employer shall give the Regional Council, affected employees and affected party trade union two clear working days notice if short-time is to continue for more than six weeks from the date of original implementation. It is further proposed that union officials shall make themselves available to meet with the employer over the twoday period and, where not available within this time period, then the employer must consult directly with the elected shop stewards. Short time must not affect workers shifts iro leave enhancement. After 6 weeks of short time, there must be negotiations on short time and employer must be forced to provide training through MERSETA and many other solutions to end short time must be determined We must replace consultation during short time and engage on negotiations. Short time should not exceed the minimum hours of 36 per week. The Industry must establish 5

6 a fund that will cater for short time. Shift Allowance The current Shift allowances provided for in s6 of the MA are adequate. The Shift allowances are intended to also cover incidental costs such as transport. Morning shift -10%, Afternoon shift -15%, Night shift -25% Transport must be paid by the company. Housing Allowance It is proposed that the matter of housing will be referred to the Bargaining Council Management Committee (MANCO). The MANCO will appoint a sub-committee to engage with MIBFA to consider a possible amendment to the rules of the fund to permit employees to borrow funds against their savings in order to qualify for a housing bond. It is noted that currently this facility is limited to the borrowing of funds for renovation, alteration and/or extension of existing homes. Housing allowance of not less than R2500 per month payable to each worker in the industry Training and Career Path Current s48 covers training adequately. It is not possible to guarantee apprentices employment at the end of their training. It is also not possible for Introduce a ratio for apprentice e.g. for every five apprentices employ one artisan. 6

7 employers to pay 100% for all training. Guarantee all apprentices employment 100 % payment for training. Current employees must not be expected to resign from employment if they take apprenticeship. Training should not be limited to certain courses Sick Leave / Sick Pay Fund The current sick leave provisions applicable in the industry are adequate. 15 days per annum and it must accumulate over a period of three years if it is not utilised. One day paid leave medical check-up. Family Responsibility Leave The Current provision of s42 is adequate. 5 days per occurrence without any exception. Accumulative clause must be applicable on all events Extend the definition of family in relation to compassionate and sick 7

8 leave to cover parents. Shifts must not be affected. Annual Leave The current provision in the industry is in line with the BCEA and go beyond the provisions in respect of workers with more than 4 years (additional 5 days) We demand a minimum of 20 days leave per annum Leave Enhancement Pay LEP is intended to be limited to a 13th cheque. Increasing this to 15% will constitute both a 13th and a 14th cheque. Extension of LEP and other benefits can be considered as part of a broader productivity incentive system for the industry. Increase LEP from 8.33% to15% Shopstewards Recognition and Time off Employers are willing to consider shift credit for authorised shop steward training limited to the stipulated 5 days. We demand a minimum of 30 days for shop stewards. Shop stewards should not lose shifts for the leave granted for union activities and training. Labour should accept Employers offer. Amend the Section 44, 46 & 47 of the Main Agreement (reasonable to be changed to unlimited time-off ) 8

9 Youth Wage Subsidy It is proposed that a principle statement be incorporated into the Main Agreement confirming that that where an employer elects to apply for a Youth Wage Subsidy this may not lead to the direct replacement of existing employees. No company in our industry should be allowed to implement Employment Tax Incentive Production Bonus See LEP above. Clause 40 Annexure D must be amended to replace the word may by shall. Production bonus should be compulsory because there are some employers who are not willing to pay a voluntary production bonus at company level Employers should agree to this demand. Severance Pay Severance pay is currently aligned to legislation and employers would like to keep it that way. We demand 4 weeks pay for each year of service. Labour must address this demand at plant level ito s35(1)(d) of the MA Ex-Gratia Payment Employers would like to keep Ex-gratia pay as is currently applied. For 5 to 10 years of service they must get 3 weeks payment. Labour should accept employers proposal 9

10 For 11 to 15 years of service they must get 4 weeks payment. 16 years of service and above they must get 5 weeks of payment Load Shedding Payment Load shedding and related conditions are neither the fault of the employer or employee and therefore the cost applicable must be shared. Workers must be paid 8 hours during load shedding, inclement weather and unforeseen circumstances not 4 hours as stipulated in the main agreement. it at their discretions or through Exemptions (Referred) SEIFSA Exemptions are currently being dealt with at the IPF Main Agreement Challenges process NEASA want an agreement on Exemption policy prior entering an agreement We must amend the current exemption policy and incorporate it to the Main Agreement (Must be dealt with at the IPF Main Agreement Challenges) it at their discretions or through 10

11 Strike and Picketing rules Section 37 (Deferred) Employers have proposed some amendments to the Labour version of the Strike and Picketing rules document. These amendments can be described in terms of three categories, 1. Additions that are based on the Code of Good Practice; 2. Amendments on items of divergence (only 2 main items i.e removal of reference to traditional weapons and provision for non-striking persons to be approached by picketers); 3. Addition of clauses to allow for plant level agreements. (Referred) It is proposed that Section 37 of the Main Agreement be clarified by the insertion of the following clause in the Settlement Agreement, thereby binding the signatories to the agreement to the following: - The Settlement Agreement amends existing terms and conditions of employment of the employees in the bargaining unit and is in full and final settlement of wages and conditions of employment for the period of the agreement. - Conditions of employment that are not amended by this agreement shall continue to apply. - No party shall, in respect of the currency of the agreement, seek to review wages and any other conditions of employment not provided for in the collective To be finalized Scrap Section 37 from the Main Agreement and it must be dealt with at the IPF Main Agreement Challenges Forum The Parties must agree to a final draft based on their respective inputs. Matter must be addressed at the IPF MAC 11

12 agreement. It is furthermore agreed that the above provision will not affect existing companylevel agreements. SUBJECT MANDATE PARTICIPATION TIMELINE PROCESS 1. Extension of scope of the agreement 1. Extend to mining and construction industry (NEED employer to in principle agree) 1. Regular Stanco members 1. Within six weeks after signing the agreement, STANCO If this matter is not resolved with a six months, a special negotiation forum must be convened to further deliberate on the ITEMS IDENTIFIED FOR REFERRAL TO EXISTING COMMITTEES 12

13 issue 2. Maternity leave 2. Realign to sick pay fund to the gazette No effect on shifts No limitation on pregnancy 2. Matter must be dealt with at STANCO and MIBFA. 2. Within a month after the agreement has been signed. STANCO 3. Artisans / Apprentice Ratio 3. Merseta manages the sector guidelines, matter to be dealt jointly there. (WE MUST SET A RATIO) 3. Collaboration forum between MEIBC and Merseta 3. Six months of signing of the agreement MEIBC & MERSETA 4. Exemption 4. NEP to be incorporated into the M/A Only changes that must be dealt with at M/A challenges 4. To be dealt with at the IPF 4. One month after the signing the agreement. IPF M/A Challenges 5. Demarcation 5. By work not end product Inc all union in process Approval by BC Manco 6. Outstanding Issues 5. Matters to be dealt with at IPF M/A Challenges. 7. Pension fund pay 7. Liability for MIBFA non payment Make it criminal offence to deduct and not pay over PF funds 8. Regional Dispensation 6. Regional/sectoral and depressed area dispensation - discounted rates of pay of 50% of the current schedules rates 5. Agree to the review of the MEIBC demarcations Practice, Process and Policy. 5. To be dealt with at the IPF 7. Agree to address this issue through MIBFA processes. 6. To be dealt with at the IPF The process must involve the referral of the matter to Stanco and Regions within six months. 7.

14 9. Small Business Exemption must be available for employers who qualify on a permanent basis, current employees to receive a 2% lower wage increase than the national rate for a 5 year period, the first 4 hours of overtime to be paid at the normal rates of pay, reintroduction of the previous Border dispensation Small business should be defined as those employers who employ less than 50 employees. Small businesses must automatically qualify for a Small Business Exemption on a permanent basis. When the number of employees rises above 50, then a 5-year phase in period to reach the scheduled minimums will apply 7. To be dealt with at the IPF 9. IOD and Disability % pay for IOD Align with COIDA Doctor use protocol Increase 37.5% to 75% Own Occ Disability 10. Project work Include Project work in part 2 Promulgate project rates Travel and Shift Credit 40 hour week OT thereafter 9. MEIBC and MIBFA 9. One year Stanco Sick pay 11. Align rules to agreement 11. GS to take up the 14

15 100% sick pay fund contribution 12. Wage Structure 12. De-coupling the implementation of the 5 grade job and wage structure from concluding productivity agreements matter. 12.To be dealt with at the IPF 15

16 ANNEXURE A Table 3: General Wage Increases: Rate Current Minimum Wage Rate Increase on Actuals and Scheduled Wage Rates Increase on Scheduled Wate Rates New Minimum Wage Rates R c % R c R c A 56,08 7,00 3,93 60,01 AA(6) 53,26 7,08 3,77 57,03 AA(start) 50,66 7,17 3,63 54,29 AB 48,12 7,25 3,49 51,61 B 45,77 7,33 3,35 49,12 C 43,85 7,42 3,25 47,10 D 42,73 7,50 3,20 45,93 DD 39,41 7,58 2,99 42,40 DDD 37,49 7,67 2,88 40,37 E 35,62 7,75 2,76 38,38 F 33,94 7,83 2,66 36,60 G 32,19 7,92 2,55 34,74 H 30,61 8,00 2,45 33,06 Whichever is the greater personal increase 16

17 END Yours comradely VUSUMZI MABHO National Engineering Sector Coordinator Copy: Secretariat HOD 17

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