Retail Motor Industry Organisation

Mail Us

Customer Support

Find an

Accredited Member


RMI News: MIBCO administrative agreement & MIBCO Wage and Substantive Negotiations update

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 4 December 2019.
Since the previous conciliation session on 18 November 2019, representatives from the RMI and NUMSA have engaged informally in order to narrow the issues in dispute. Substantial progress was made towards a possible agreement during these informal sessions, so much so that a possible settlement area on wages only (and all other non-wage issues off-the-table), was identified. NUMSA undertook to canvass the proposed settlement area with its regional structures and confirmed on 4 December 2019 that its regional structures have prepared a recommendation for NUMSA’s national leadership to consider and approve. The details of this recommendation is not clear, however NUMSA’s negotiating team did indicate that it would be a positive recommendation in pursuit of settlement.
NUMSA requested that the RMI provide them with a week’s grace to test a possible settlement area with their national leadership and in return, undertook to revert to the RMI negotiating team by 11 December 2019, when hopefully an agreement will be brokered.
The RMI will continue to keep its valued members updated on developments, and remain buoyant about the likelihood of a settlement between the parties in due course.
In the interim, members are inundating RMI Regional Offices with queries about their obligation to pay employee bonusses. In short, we must advise that employers are not legally liable to pay bonusses to employees in December 2019, since the MIBCO Main Agreement compelling employers to do so, has expired. Members must, however, take note of the fact that, in the event that they provide for bonusses in individual employment contracts, such provisions will have to be honoured.
Another often-asked question by members is whether the wage agreement will be back-dated. The short answer to this questions is ABSOLUTELY NOT! No wage agreement will be back-dated and will only become binding when it is published in the Government Gazette by the Minister of Employment and Labour, which will definitely only be in 2020.

Notice of the extension of the MIBCO Administrative Agreement Government – Government Gazette Notice R.1177 of 26 October 2018.
This serves as confirmation that the Minister has extended the above-mentioned Agreement in terms of section 32A(2) of the Labour Relations Act, 1995, to be applicable to all participants in the motor industry (parties and non-parties).
The commencement will be implementable in the motor industry from 2 December 2019 in accordance with Gazette 42877 of 2 December 2019, notice R.1559.


The Administrative Agreement Government Notice R.1177 of 26 October 2018 to come into operation again as from Monday 2 December 2019 and will expire on Tuesday 1 December 2020 or subject to the renewal of the Agreement.
This means that all provisions of the MIBCO Administrative Agreement will be applicable with immediate effect. Employers of the motor industry are kindly advised to contact MIBCO to reinstate returns to what is was before 1 September 2019.
Copies of the respective extended notices can be accessed on MIBCO’s web page at