2019 MIBCO wage negotiations

The table has been set for the 2019 round of wage and substantive negotiations for the retail motor industry, under the auspices of the Motor Industry Bargaining Council (MIBCO).

The two trade unions and three employer bodies were given the opportunity to exchange bargaining proposals (or demands as the trade unions refer to it) on 27 April. The RMI has indeed received the trade unions’ demands and conducted extensive mandating roadshows throughout the various regional main centres during the first two weeks of May 2019.

These roadshows were well attended, and members actively participated in the development of a consolidated RMI/ business mandate, which will form the basis from which the core negotiating team will engage with the trade unions at the first of three negotiation sessions on 22 and 23 May. The second session will take place on 5 and 6 June and the date for the third session is still to be determined.

The parties to negotiations are hard-pressed to conclude and sign a new three-year MIBCO Main Agreement before the end of June in order to ensure that sufficient time is afforded to the Minister of Labour to publish and extend the agreement to non-parties. The current Main Agreement, and for that matter the Administrative Agreement too, expires on 31 August 2019. The RMI and its negotiating partners appreciate the urgency with which a new agreement needs to be concluded. This will be no easy task, considering the large number of trade union demands, ranging from (to mention a few) a 15% across-the-board wage increase, to a R5,000 per month housing allowance, a 20% shift allowance for all employees, and a 20% increase in non-wage cash components like stand-by and call-out allowances.

In the absence of published and extended Main and Administrative Agreements by 1 September 2019, MIBCO risks serious challenges in relation to the continued collection of MIBCO levies, trade union subscription fees, Sick-, Accident- and Maternity-Pay Fund (SAF) contributions, additional holiday pay, and the like – all of which are collected in terms of the Administrative Agreement. This will have an adverse impact both on MIBCO, as well as the various social security funds in the industry.

We urge our negotiation partners to share the urgency, earnestness and good faith with which we are approaching this process. We believe a positive outcome will ensure the sustainability and profitability of the industry, as well as aid the creation of much-needed jobs and the alleviation of poverty in our country as a whole.

UPDATE: MIBCO wage and substantive negotiations for 2019

With the advent of the current Motor Industry Bargaining Council (MIBCO) Main and Administrative Agreements expiring on 31 August 2019, the parties to MIBCO have commenced the negotiations process aimed at securing a new agreement for the next three years.

As was to be expected, the first session, on 22 and 23 May 2019, yielded very little progress as the parties used the opportunity to obtain clarity regarding each others’ bargaining proposals and demands.

The process is facilitated by a commissioner appointed by the Commission for Conciliation, Mediation and Arbitration (CCMA). The commissioner used a number of bilateral meetings with the parties individually, to explore possible areas of agreement, however given the vast number of demands tabled by the trade union parties, very little progress was made.

The parties have agreed to resume negotiations on 20 and 21 June 2019. The RMI will continue to keep its valued members updated on progress in this regard.