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Getting ready for change – a word from RMI’s CEO


As we come to the end of the first quarter of 2021, a priority of the RMI remains keeping members aware of new trends and any industry developments that may impact how members and business owners think about their future in the industry and the changes they may need to consider.   

In last month’s Driver’s Seat, I touched on the Competition Commission Guidelines, which will come into effect on 1 July 2021.  We appreciate that there has been a lot of debate taking place in terms of how the definitions should be interpreted and what actions will be necessary to ensure members are ready for the implementation date. Over a very short period, member businesses will have to interpret the guidelines while introducing changes to their business models in order to be compliant with the Competitions Commissions requirements as per the guidelines.

The RMI has committed to communicate with industry on the progress in the interpretation and application of the guidelines to avoid a fragmented approach and misunderstandings. This needs to be a collaborative approach between each of our associations impacted by the Guidelines. We have accordingly just completed the process of briefing senior counsel in this regard and will be sending out a communication in the next couple of weeks.

We believe that while the changes represent an opportunity for our members to rethink and plan their business models, we envisage that initially, they will take place fairly gradually. As the automotive aftermarket awaits the implementation date, the RMI recommends that caution should be exercised before any drastic changes are implemented in the current business models at a time when we are still trying to unravel the potentially different interpretation and application views of the guidelines.

On the IR front I am pleased that the publication and extension of the Motor Industry Bargaining Council (MIBCO) main agreement was finally concluded by the Minister of Employment and Labour. This is inclusive of the new wage rates and non-wage cash component values. An announcement was sent earlier this month and for members’ ease, our own IR specialists have put together a series of podcasts with  information to the salient points. This is available on the RMI website.

Finally, we were also happy to share a compliance manual in respect of the Protection of Personal Information (POPI) Act, which takes effect on 1 July. This was put together in conjunction with our attorneys, Barnard Incorporated, and should help you navigate the various requirements. You will find some information on page 17 of this issue.

Please see the April Automobil edition here: Automobil April 2021