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Category: Bargaining

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Update: MIBCO wage and substantive negotiations for 2019

Further to our update of 04 December 2019, wherein we advised that NUMSA has requested the RMI and other employer parties to provide them with a week’s grace to test a possible settlement area with their leadership structures and as a consequence, would advise the outcome of this process by 11 December 2019.
We have to advise that NUMSA has requested another extension until close of business on 13 December 2019, to revert.
The RMI will continue to keep its valued members updated on developments.

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Update: MIBCO wage and substantive negotiations for 2019

The conciliation process aimed at resolving the impasse between employers and NUMSA at this year’s wage and substantive negotiations, under the auspices of MIBCO, continued on 23 October 2019.
During the previous session of conciliation on 11 October 2019, the RMI and the other employer parties tabled a revised wage offer, the details of which were reported on at the time. NUMSA was requested then, as they were at the last session on 23 October 2019, to respond to this revised offer of the employer parties, however they have refused to do so and have insisted that they would settle for nothing less than the terms of the 2016 wage agreement, as well as substantial changes to short time provisions, the introduction of night shift and travel allowances, and an incease in overtime rates.
In view of NUMSA’s refusal to continue the negotiation process if their demands, as mentioned above, were not met, the RMI and the other employer parties were left with no other option but to register an objection to NUMSA proceeding with the finalisation of Picketing Rules, which is a legal prerequisite for it to commence with a legal/protected strike.
The legal requirements for NUMSA to proceed with a legal/protected strike was explained to members on 18 October 2019, but in short, this requires that NUMSA conduct a recorded and secret ballot of their 78,000 members across 22,000 businesses in the industry, in order to determine support for a strike. Only once such a ballot has been conducted can Picketing Rules, that regulate the conduct of striking employees, be finalised. NUMSA has failed to conduct the required ballot of their members, to date.
The RMI’s objection will now be subjected to thorough consideration by the Commissioner appointed by the CCMA, and in all likelihood, this will take several weeks, due to the fact that the rules of the CCMA are very specific on how matters of this nature ought to be resolved by the Commissioner appointed for this purpose.
In the meantime, the RMI has encouraged NUMSA to continue the negotiation process as the conclusion of a wage agreement for the next three years has become a matter of priority.
Whilst industrial action will always remain a hypothetical possibility, the RMI remains confident that the on-going negotiations process will produce a wage agreement between the RMI and the other employer parties on the one hand, and NUMSA on the other.
A new date for conciliation has not yet been determined, as the consideration of the RMI’s objection will take at least 10 days. however when the new date for the resumption of conciliation has been determined, we will advise members accordingly.
The RMI will continue to keep its valued members updated on developments, and would caution against distress about the slow pace of progress. We remain buoyant about the likelihood of a settlement between the parties in due course.

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Update: MIBCO wage and substantive negotiations for 2019

The Commission of Conciliation Mediation and Arbitration continued to conciliate the wage dispute that NUMSA declared with the employers on 30 August 2019, on 11 October 2019.
During the second day of conciliation, the RMI and the other employer parties responded with an amended settlement proposal in response to a proposal from NUMSA requesting that the wage deal for the past three years (2016-2019) be replicated for the ensuing three years. The RMI and the other employer parties proposed the following increases on wages and non-wage cash components (i.e. stand by, call-out and tool allowances):
Component Manufacturers registered under Chapter III
Year 1: 6%                                                        Year 2: 5½%                        Year 3: 5½%
Rest of Industry (excluding the fuel retail industry)
Year 1: August CPI + 1½%  (equal to 5,8%)     Year 2: 5½%                        Year 3: 5½%
Fuel Retail Industry registered under Sector 5
Details to be released under separate cover, in due course.
The RMI’s offer is conditional on NUMSA relinquishing its proposals/demands regarding the introduction of night shift and transport allowances, higher overtime rates for Chapters II and III, and the effective scrapping of the short time provisions in the Main Agreement, and resonates the RMI’s commitment towards ensuring that the wage agreement for the ensuing three years promote business sustainability and profitability, as well as to promote job retention and creation.
NUMSA did not respond to the RMI and other employer parties’ revised proposal on wages and it was agreed that the conciliation process will continue on 23 October 2019, aimed at achieving agreement on wage increases and a number of other related process issues.
Details regarding progress with negotiations in Sector 5 (fuel retail businesses) will be released under separate cover.
The RMI will continue to keep its valued members updated on developments, and would caution against distress about the slow pace of progress. We remain buoyant about the likelihood of a settlement between the parties in due course.

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Update: MIBCO wage and substantive negotiations for 2019

After five sessions, comprising nine days of negotiations, NUMSA declared a dispute with the employers on 30 August 2019. In terms of the MIBCO Constitution, a dispute meeting had to be convened within 14 days; this dispute meeting took place on 9 September 2019.
In terms of NUMSA’s dispute declaration, all the issues raised in its original list of bargaining proposals/demands, constituted the terms of the dispute and during the dispute meeting, NUMSA was not prepared to depart from these proposals/demand if the employers were not prepared to invalidate the Peace Clause, which prohibits plant-level bargaining.
The Peace Clause is fundamental to peace, sustainability and viability of the industry, and the RMI has been mandated by its members, in no uncertain terms, NOT to dilute or invalidate this particular provision.
As a consequence, the dispute between NUMSA and the employers remains unresolved and mediation, under the auspices of the CCMA, which is the next process for the parties to utilise in achieving agreement, has been scheduled for 23 September 2019.
Details regarding progress with negotiations in Sector 5 (fuel retail businesses) will be released under separate cover.
The RMI will continue to keep its valued members updated on progress in this regard.

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Update: MIBCO wage and substantive negotiations for 2019

The parties to MIBCO resumed the negotiation process aimed at securing a new Main Agreement for the next three years on 29 August 2019.
At the end of the fifth session on 30 August 2019, NUMSA declared a dispute with the three employer parties to the Council, being the RMI, NEASA and the FRA. At the heart of the dispute are wage increases and the retention of the Peace Clause.
The RMI’s offer of 5% wage increases for each year for the following three years (i.e. 2019 – 2022), was rejected by NUMSA, who demanded a 10% increase in wages, across the board. The RMI’s wage offer is informed by the consumer price index, which was recorded at 4% for the month of July 2019.
NUMSA is also insisting on the effective scrapping of the Peace Clause which, if agreed to, would mean that employees can strike despite any agreement reached between the trade unions and employers. The retention of the Peace Clause in the current form is a key to labour peace, and the viability and sustainability of businesses in the industry, and therefor deemed to be a “non-negotiable” by the RMI.
Details regarding progress with negotiations in Sector 5 (fuel retail businesses) will be released under separate cover.
In terms of the MIBCO Constitution, a dispute meeting between the parties must be held within 14 days of the dispute being declared. This dispute meeting has been scheduled for 09 September 2019. If the dispute between the parties is not resolved at this meeting, mediation must be scheduled within 10 days of the dispute meeting.
The RMI negotiating teams has been informed of a number of rumours doing the rounds in the industry that NUMSA members are about to embark on strike action. The RMI assures its members that no lawful/protected strike can take place before the dispute resolution procedure mentioned above, together with a secret strike ballot and an agreement to picketting rules, have been finalised. Rumours of this nature must be viewed as “fake news”. The parties will continue to explore the most appropriate terms for a new wage and substantive agreement for the next three years at the dispute meeting on 09 September 2019. Negotiations are therefore on-going at this stage.
The parties will continue with bilateral engagements in the meantime, in aid of further narrowing the substantive gap between what the employers consider an appropriate agreement, and what NUMSA has proposed. The RMI will continue to keep its valued members updated on progress in this regard

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Update: MIBCO wage and substantive negotiations for 2019

The parties to MIBCO resumed the negotiation process aimed at securing a new Main Agreement for the next three years, on 13 August 2019.

As was to be expected, the fourth session yielded some progress in that NUMSA revised its original wage proposals from 12% across the board, on actual wages for all businesses, to a request that the wage deal for the past three years (2016 – 2019), be replicated for the ensuing three years. In effect, this means that NUMSA is seeking the following increases :

Component Manufacturers registered under Chapter III :

Year 1 : 8.5%                       Year 2 : 8%                          Year 3 : 7.5%      

Rest of Industry (excluding the fuel retail industry) :

Year 1 : 7%                          Year 2 : 7%                          Year 3 : 7%         

Fuel Retail Industry registered under Sector 5 :

Details to be released under separate cover, in due course.

Apart from the unrealistically high wage increase percentages proposed, the revised NUMSA “package deal” however, still contains a vast number of proposals that are in direct conflict with most of the RMI’s core values and principles, such as the maintenance of the current wage model and the retention of the peace clause.

The RMI and other employer bodies jointly tabled what it deems to be an appropriate “package proposal”, aligned to its core business principles and values, such as business sustainability, affordability and the retention of jobs / job creation. This proposal involves an increase in wages for employees within the threshold of MIBCO, at a rate of 5% for each year, for the next three years, based on the existing wage model. All non-wage cash components will be increased by the corresponding percentages for each of the three years. This proposal was rejected by NUMSA and no further progress was achieved on the day.

The parties will confirm the resumption of the process and plan to reconvene on 29 and 30 August 2019, when the parties will continue to explore the most appropriate terms for a new wage- and substantive agreement for the next three years. Negotiations are therefore on-going at this stage.

There have been media reports that NUMSA has declared a dispute with the RMI and other employer bodies, however we can assure our members that, as at time of sending this update, NO dispute has been declared by any of the parties. The parties remain committed to a negotiated outcome to the process.

Sector 5 (fuel retail) negotiations, propagated by a unified employer team comprising the RMI / SAPRA, the FRA and NEASA, is taking place in parallel to the negotiations for the rest of the Industry and substantial progress was achieved on a number of process issues. The sector 5 employer team has however agreed amongst itself to issue a consilidated update report on 14 August 2019, detailing progress and key issues under consideration.

The parties will continue with bilateral engagements in the meantime, in aid of further narrowing the issues and the substantive gap between what the employers consider an appropriate agreement, and what the trade unions have proposed. The RMI will continue to keep its valued Members updated on progress in this regard.

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MIBCO wage and substantive negotiations for 2019

The parties to MIBCO resumed the negotiation process aimed at securing a new Main Agreement for the next three years, on 01 August 2019.

As was to be expected, the third session, comprising 01 and 02 August 2019, yielded some progress for the first time given the urgency of securing a new wage- and substantive agreement, and the fact that the current agreement terminates at the end of August 2019.

By close of business of 01 August 2019, NUMSA tabled a proposed “package deal” comprising a number of elements that it views as the basis for a possible agreement. This “package deal” however, still contains a vast number of proposals that are in direct conflict with most of the RMI’s core values and principles, such as the maintenance of the current wage model and the retention of the peace clause. NUMSA’s proposal around wage increases is also still unrealistically high at 12%, across the board, for all sectors.

The RMI’s core negotiating team indicated to NUMSA that it was not in a position to respond to the proposed “package deal” on 02 August 2019, as it needed to revert back to its principles on the question of an appropriate response to the elements of the package deal constituting an attack on the RMI’s core business principles and values, such as business sustainability, affordability and the retention of jobs / job creation.

The parties agreed to adjourn the process and reconvene for the resumption of negotiations on 13 August 2019, when the RMI will respond to the NUMSA “package deal” with what it views as the most appropriate terms for a new wage- and substantive agreement for the next three years.

Sector 5 (fuel retail) negotiations, propagated by a unified employer team comprising the RMI / SAPRA, the FRA and NEASA, is taking place in parallel to the negotiations for the rest of the industry and substantial progress have been made on a number of process issues. The sector 5 employer team has however agreed amongst itself to issue a consilidated update report on 05 August 2019, detailing progress and keys issues under consideration.

The parties will continue with bilateral engagements in the meantime, in aid of further narrowing the issues and the substantive gap between what the employers consider an appropriate agreement, and what the trade unions have proposed. The RMI will continue to keep its valued members updated on progress in this regard.

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