Wages Archives - Retail Motor Industry Organisation

We are pleased to advise that the wage and substantive agreement for the period ending 31 August 2022, that was concluded between the RMI, NUMSA and the Fuel Retailers’ Association, has been submitted to the Department of Employment and Labour for publication in the Government Gazette, and extension to non-parties. This agreement provides for the increases in wages and wage-related components such as allowances and the threshold, for each of the three years of the agreement.
MIBCO’s management team has finalised the wage schedules, applicable until 31 August 2020, however it is extremely important that members understand that the new wage dispensation only becomes binding on employers and employees when the Minister of Employment and Labour publishes and extends the agreement in the Government Gazette. This process can take a few months to complete.
Attached, please find the new wage schedules for the period ending 31 August 2020, for your records. Employees who earn wages/salaries (gross before overtime allowance and bonuses) below the threshold of R205,433.30 per annum are legally entitled to the increases according to the wage tables attached. Wages for employees earning above the specified threshold are not regulated by the Main Collective agreement and these are subject to employers’ discretion.
Individual employers seeking exemption to pay a lesser wage increase or to be entirely exempted from paying such, must do so on a Wage Exemption Application form which is obtainable from their local MIBCO Regional Office or website – www.mibco.org.za. Such application must be submitted no later than 21 days from the date of gazettal to the local MIBCO Regional Office, either by hand delivery; registered mail; facsimile or e-mail in the prescribed format with the following supporting documentation attached:

Formal financial information;
Written motivation; and
Detail and proof of the consultative process between the employer, employee and relevant MIBCO Trade Unions.

A wage dispute that NUMSA declared with the employers on 30 August 2019, was subject to conciliation under the auspices of the Commission of Conciliation Mediation and Arbitration on 30 September 2019.
During conciliation, NUMSA abandoned its position on most of the issues raised in its original list of bargaining proposals/demands, including invalidating the Peace Clause, which prohibits plant-level bargaining, and tabled a proposal requesting 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.
This is basically the same proposal tabled by NUMSA on 13 August 2019, which it withdrew the following day.
Apart from the unrealistically high wage increase percentages proposed, the revised NUMSA ‘package deal’ still contains a number of proposals that are in direct conflict with most of the RMI’s mandate, such as 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.
The RMI negotiating team is reviewing its current wage offer of 5% based on the current wage model, for each of the three ensuing years, and will make a counter proposal at the next session of conciliation, which the parties agreed would be on 11 October 2019.
Negotiations are therefore ongoing, despite media reports to the contrary.
The RMI will continue to keep its valued members updated on developments, and would caution against distress about the lack of progress. We remain buoyant about the likelihood of a settlement between the parties in due course.

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Category: Wages

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