As the 2022 year draws to a close, I am delighted that after many months of negotiations, on 4 November 2022 the Retail Motor Industry Organisation (RMI), the Fuel Retailers Association (FRA) and the National Union of Metal Workers (NUMSA) concluded and signed a three-year settlement agreement to conclude the 2022 round of collective bargaining negotiations.
The agreement provides for a 7,5%, 6% and 6% increase in the component manufacturing sector, and 6,5%, 5% and 5% for the rest of the industry for the next three years respectively. A separate deal was concluded for the fuel retail sector.
The settlement agreement was adopted at the Motor Industry Bargaining Council’s (MIBCO) Annual General Meeting on 10 November 2022 and is currently being processed for submission to the Minister of Employment and Labour for publication and extension to non-parties, in the Government Gazette. Once gazetted, the wage increases are compulsory in respect of all employees within the scope of MIBCO.
Even though the negotiations took longer than anticipated, we are satisfied with the outcome of the process. From the onset, we emphasised the importance of labour stability, business viability and industry peace. Those factors together with an inflation-informed wage increase are critically important to not only prevent job losses but to promote employment within the industry. With a three-year agreement in place our industry will be able to enjoy industrial peace without the threat of strikes for three years. It will also allow businesses to budget and plan for the period with certainty.
The RMI would like to advise that it is only compulsory to implement any wage increases once the agreements have been published in the Government Gazette.
Members may however elect to implement wage increases before the gazettal, and in those cases, the RMI advises that members wait until the official wage schedule has been circulated by MIBCO, which we believe will happen in the next few working days. This will ensure the correct implementation of the wage increases, and members are assured that, in terms of the set-off provision, they will not have to implement the agreed increases again once they are published.
Remember if you have any queries, you can contact your local IR Specialist directly IR Contacts– IR Contacts – Retail Motor Industry Organisation (rmi.org.za)
We have also just released our annual report for the last financial year. A copy can be found on the RMI website for those who would like to get more information about our activities and successes.
You will be delighted to hear that RMI once again managed to deliver on its mandate. The report highlights the extensive value-adding activities of the organisation operating in a turbulent economy. I am proud of the fact that we continue to prosper and evolve, capitalising on the synergies within the organisation. The unexpected, but gratifying, membership growth during the year continues to be tangible proof that you our members and other businesses in the industry find our role valuable and worthwhile.
On a final note, while the struggling economy is likely to continue during 2023, team RMI is excited and committed to tackle the new year. We keep the interests of our members and the industry top of mind at all times. We appreciate that our member businesses are not fully out of the woods yet, but are making a slow recovery. As a country, we need real economic growth and address the scourge of corruption that is undermining all aspects of our ability to develop and prosper.
From the Association’s side, we will continue to lobby in the best interests of our members, and consumers as a whole and remain fully committed to making a real and lasting difference in the industry we support and serve.
I conclude by wishing all our members, the RMI Board and other committee structures, management and staff of the RMI as well as our readers a happy festive season. Please travel safely and enjoy time with your loved ones.
I would also like to thank you all for your support, loyalty and contribution to making the RMI a success.
Read the December Automobil here: Automobil December 2022 (joomag.com)
