SUMMARY OF 21 ST MAY 2014 ENGINEERING WAGE NEGOTIATIONS DEMANDS Wages LABOUR CONSOLIDATED DEMANDS 20% on actuals or R6500 on grade H whichever is the greater EMPLOYER S RESPONSE CPI for the month of April 2014 is 6.1% Reduction of 50% on all existing minimum scheduled wage rates must be introduced and applied to all new entrants Total cost to employment basis with no other substantive change to employment conditions. No Back dating and agreement applicable on the date of signature. NUMSA DEMANDS We demanded 15% across the board Defeat the Technical schedule set up. Downward variation. No condition. Matter must be dealt with at the IPF Main Agreement Challenges Prepared to look at reviewing and/or varying terms and conditions of employment contained in the Main Agreement in exchange for increasing the wage offer - provided the total cost of employment does not exceed CPI
NEASA (No Response) Border Association (Align with SEIFSA) Duration of the Agreement One year 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 subject to Border dispensation addressed) One year agreement effective 01 st July 2014 to 30 th June 2015. We reaffirm the one year agreement. Scope of the agreement Extend to mining and construction industry and all non-scheduled employees in MEIBC Refer to process issues to be dealt by MEIBC Stanco same as Scrap Metal Extend the scope of the council to include Scrap Metals, Mining and Construction. Parties agreed that it must form part of the Stanco issues. Labour Brokers Ban No Response Total ban or abolish labour brokers in the industry. Short Time Remove short time and lay-off from agreement No response 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
Shift Allowance 20% for all shifts and employer to pay for transport in full 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 a fund that will cater for short time No Response Morning shift -10%, Afternoon shift -15%, Night shift -25% Transport must be paid by the company. Housing Allowance R 5000-00 per month No response Housing allowance of not less than R2500 per month payable to each worker in the industry Training and Career Path 100% payment for training. Allow Merseta processes where Introduce a ratio for apprentice
Art / Appr Ratio all parties are represented. e.g. for every five apprentices employ one artisan. Guaranteed Apprentice Employment There is no agreement yet in Merseta forums. (Pursue) No Apprentice resign No Training Limit 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 / IOD / Illness/ Sick Pay Fund 15 days per annum be accumulated over 3 years Align rules to agreement 100% sick pay fund contribution It must be dealt by the Board of the Sick Pay Fund and just set up terms of reference 15 days per annum and it must accumulate over a period of three years if it is not utilised. IOD should be paid 100% by the employer and the employer will claim from the Compensation fund. One day paid leave medical check-up. Pursue Employer to top up the 75%
Realign the agreement on maternity leave to sick pay fund. Limitation to the number of pregnancies should be removed. Maternity Leave Realign to sick pay fund no effect on shits Align with Sick Pay Fund. Shifts must not be affected for taking maternity leave. No limitation on pregnancy Paternity Leave 5 days per annum accumulative No response Family Responsibility Leave 5 days per occurrence Extend definition of parents for illness purposes not limit to death Accumulative clause applicable on all No effect on shifts No Response 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 leave to cover parents. Shifts must not be affected. Annual Leave 20 days for employees less than 4 years. 25 days for employees with 4 years of service and more up No Response We demand a minimum of 20 days leave per annum
Leave Enhancement Pay till 10 years. 30 days for employees with 10 or more years of service Increase formula from 8.33% to 15%. No Exemption on LEP. Deduct tax on LEP during year to get full 13th cheque at the end of year No Response Increase LEP from 8.33% to15% Shopstewards Recognition and Time off No loss of shift Amend s 44,46 and 47 to no limit on time off All rights without majority Shop Stewards where there is 10 members or more It must be dealt with at plant level 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. Amend the Section 44, 46 & 47 of the Main Agreement (reasonable to be changed to unlimited time-off ) Pursue Youth Wage Subsidy No youth Subsidy No Response No company in our industry should be allowed to implement Employment Tax Incentive
Production Bonus To be compulsory No Response 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 Severance Pay 4 weeks per year No Response We demand 4 weeks pay for each year of service. Ex-Gratia Payment 5-10 years 3 weeks pay 11-15 years 4 weeks day No Response For 5 to 10 years of service they must get 3 weeks payment. 16 years or more 5 weeks pay 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 Full pay No Response Workers must be paid 8 hours during load shedding, inclement weather and unforeseen circumstances not 4 hours as stipulated in the main agreement. Leave Calculation Captured in no 14 No Response
Exemptions Review Exemptions policy Exempt only non-participants No rate exemption for labour brokers. No exemption to non-paid up employers. Retrospective payment of wages increase where exemption is not granted. Require financial statement supported by auditors reports. We must amend the current exemption policy and incorporate it to the Main Agreement (Must be dealt with at the IPF Main Agreement Challenges) Outstanding Issues Demarcation Standby and Call-out Allowance IPF issues to be dealt with in these negotiations. By work not end product Inc all union in process Approval by BC Manco No worse than minimum. Define fatigue shift. 4 hours standby allowance to all Must be finalized at the IPF Main Agreement Challenges forum To be dealt with at Regional Council where rules and regulations can be developed then thereafter make a policy Stanco to deal with the matter No Response
Pension Fund Pay Transport pays AA Rate. Pay overtime from call time. Liability for MIBFA nonpayment. Make it criminal offence to deduct and not pay over PF funds. It has been promulgated. Good Governance Medical Aid Employer to contribute 60% toward medical Aid scheme. No Response Tool Insurance 100% or R5000 whichever is the greater including theft No Response. Work Reorganisation 120 working days notice No Response Hours of work No change OT and ST No Response Strike and Picket Rules Protect non strikers Facilitator has developed a draft Peace Accord and Picket Rules proposal. Document will be submitted at an appropriate time. Work in time arrangement S 38 to be OT Rate No Response Project Work Include Project work in part 2 No Response Promulgate project rates
Travel and Shift Credit 40 hour week OT thereafter Long Service Pay Increase from 5 years No Response Acting Allowance From 1st hour acting allowance pay at rate of job EMPLOYERS PROPOSALS ITEMS PROPOSALS UNION RESPONSE Peace Accord Survival and growth of the Industry Job Creation and Job Retention Productivity Regional Dispensation Small Business Dispensation Parties must reach an agreement on Strike and Picket Rules Create sustainable jobs the introduction of provisions which encourage employment at entry level Introduce entry rate less 50% the current minimum Small and SMME businesses must automatically qualify for the small The facilitators proposal is under discussion with in the structures Refer to IPF National and Trade Policy Forum Referred to IPF Main Agreement Challenges Referred to IPF Main Agreement Challenges Referred to IPF Main Agreement Challenges
Section 37 of the Main Agreement business exemption arrangement, on a permanent basis Will not conclude an agreement if there is no agreement around Section 37. To remove Section 37 from the Main Agreement. 5% Administration fee for subscription To pay administration fee Reject END Drive the wages of all other workers downwards Destroy employment in some areas as employers relocate to take advantage of incentives in special economic zones Displace older or unsubsidised workers, Create a multi-tiered labour market for wages, benefits and overall employment condition Fail to create jobs, as World Bank research has shown