Please be advised that the following MIBCO Collective Agreements have been enacted and published in Gazette 48340 of 31 March 2023, Notice no. R.3226 (Page 69 of Gazette 48340, with an extension to non-parties of the Motor Industry, namely, the:
- Administrative Collective Agreement, and
- Main Collective Agreement.
It is important to note that the Autoworkers Provident Fund Agreement and the Motor Industry Fund Agreement (the Fund Agreements), which contain amendments to the previous versions of the said agreements, have not yet been signed off by the Minister of the Department of Employment and Labour and have consequently not been published in the Government Gazette. Although the Fund Agreements have not been Gazetted yet, the previous versions thereof remain effective as the period of application for those agreements was extended by the Minister in 2022.
Members’ attention is drawn to the following important points:
- The newly published Main- and Administrative Agreements repeal and replace all previous versions of the said agreements and will become effective on 10 April 2023;
- In terms of Government Gazette 48092 of 20 February 2023, Notice 3067, as of 01 March 2023, the wage earnings threshold is R241 110.59 per annum. Employees whose earnings are equivalent to or less than the new threshold are required to belong to the Autoworkers Provident Fund (AWPF) or Motor Industry Provident (MIPF) unless those employees have a provident fund exemption to belong to an alternative retirement fund. It also means that MIBCO levies are due for employees who earn below the MIBCO wage threshold, notwithstanding that all MISA and NUMSA members are due to pay MIBCO levies regardless of their earnings;
- The published MIBCO wage for the Grade-1 Parking Garage Attendants is repealed as of 01 March 2023. Those employees must earn at least the minimum hourly rate of R25.42 as of 01 March 2023, in accordance with the National Minimum Wage, Government Gazette 48094 of 21 February 2023;
- The Area Differentials (Area A and Other Areas) have been removed in the Main Agreement and wage tables;
- The term Journeyman has been replaced by Artisan. Henceforth, any employee who had the occupational status of a Journeyman will adopt the status of an Artisan;
- The term BA-journeyman has been replaced by PR-Artisan (Practically Recognised Artisan). The status of this category of employees however remains unchanged.
- The value of all allowances and non-wage cash components remains unchanged until 31 August 2025.
Members who experience financial difficulty may apply for an exemption to pay the prescribed minimum wages (please refer to Annexure ‘’A’’ below). New applications or re-applications to extend exemptions may be done for Actual / Guaranteed Wage Exemption Applications. Such applications must be submitted to MIBCO Regional Councils for consideration within 21 days of publication of the new agreement. Employers requiring national exemptions for groups of companies or multiple branches extending across provincial borders, should make their submissions to the Regional Council where the head office of those companies is located. Individual employers wishing to apply for an exemption to pay a lesser actual or a guaranteed wage increase or to be exempted from paying such must do so by completing the Wage Exemption Application Form which is obtainable from their regional MIBCO office or their local RMI IR Specialist. Such applications must be submitted by Monday 24 April 2023 to the local MIBCO Regional Office by hand delivery, registered mail, facsimile or E-mail in the prescribed format with relevant supporting documentation as outlined in the Wage Exemption Application Form.
Additional Holiday Pay and Holiday Bonus exemption applications must be submitted to the MIBCO Regional Councils for consideration no later than 30 April 2023. The RMI advises that members consult their local IR Specialist when applying for exemptions: IR Contacts – Retail Motor Industry Organisation (rmi.org.za)
An employer that granted an increase over and above the prescribed increases during the preceding 12 months may offset those increases against the increases set out below; provided that no wage increases shall be offset on more than one occasion.
If members have any queries, kindly contact your local IR Specialist: IR Contacts – Retail Motor Industry Organisation (rmi.org.za)