MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS.
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Transcript of MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS.
MIBCO NEGOTIATIONS : 2013
RMI MANDATING MEETINGS
Strike WaveJanuary to March 2012: Mining (Impala)August 2012: (lonmin – Marikana)September 2012: (Mining – Goldfields, Anglo
& others)November 2012– January 2013:
(Farmworkers)March 2013 (Postal Services)April 2013 – BussesThe future???
Lonmin Strike - MarikanaWage Demands – R12 500 per monthProtests against housing, water supply and
running water (Socio-economic issues)Migrant workers – higher living costsAMCU membersDisgruntled NUM membersEffects on COSATU and its affiliates and
subsequent negotiations
Farmworkers strikeSectoral DeterminationViolent strikes and damagesR69 per day to R105 per day
Challenges in Collective Bargaining Violent and protracted strikesPolitical and party structure based negotiations
rather than membership needsIncreased disregard for rule of lawIncreasing legal challengesLack of capacity in negotiating teamsUnrealistic demands/unreasonable expectationsIneffective
feedback/communication/dissatisfaction at grassroots level
Lack of leadership/negotiators play messengerPursuance of short term gains at the expense of
sustainabilityAdversarial and positional bargaining
Violence during strikes
Total disregard to rule of lawStriking minority who want to impose will on
the majority?Business proposals to re-introduce balloting
prior to strikes during labour market policy review process
Picketing – strengthening of picketing rules
Legal Challenges with the Collective Bargaining Arena
MEIBC – Challenge by NEASA - Employer party to the Bargaining Council that did not sign the MEIBC Agreement (Extension to non Parties)
Clothing Workers Bargaining Council (Extension to non-parties
Free market FoundationCapes vs. Minister of Labour, Motor Industry
Bargaining Council and Parties to Council
Extension in terms of S32 of LRABargaining Council may ask the Minister in writing to extend a collective agreement if:
(a) One or more registered trade unions whose members constitute the majority of the
members of the trade unions that are party to the Bargaining Council vote in favour of the extension; and(b) One or more registered Employers’ Organisations whose members employ the majority of the employees employed by the members of the Employers’ Organisations that are party to the Bargaining Council, vote in favour of the extension
Representativeness
The importance of representativeness
MIBCO - Certificate of representativeness
The Role of MISAOn two previous occasions MISA has not
signed the collective agreement
The ramifications of MISA not signing the collective agreement, in the light of recent legal challenges
Bases for Wage Demands - Labour
CPI for low income earners
Minimum living wage demands
Equal pay for work of equal value
Wages – Business BenchmarksHistorically - CPI + improvementCPI – Jan 2013 : 5.47%
February 2013 : 5.86%March 2013 : 5.9%April 2013 : Not released as yet
Consumer Inflation is projected to remain within the 3 – 6 percent target band over the next three
years
Economic ProspectsEconomic Growth: Low level 2011 – 2014 (2.5% - 3.8%)Rate of Unemployment: 23.5% - 25%Moderate employment Growth expected over next 3
yearsJob creation prospects depend largely on private sectorConsumer inflation projected to remain within 3-6%
target band (next three years)Consumer consumption will stay under pressurePressure will stay on Rand Exchange rate to depreciateReal decrease in house prices
Rebalance Investments, Dr Chris Harmse
Cycle and Duration of AgreementsThe importance of multi-year agreements
The cycle – The implications of changing the cycle to be in line with the Auto Sector and MEIBC
Concept of Mega-Bargaining Council
Pre-amble and Peace Clause
The implications of the current pre-amble and peace clauses in the Main Agreement for the Motor Industry
Threshold and ScopeMeaning of Scope
Purpose of Threshold
Demand to remove the threshold of earnings clause and the implications thereof
Demands for the Banning of Labour Brokers (T.E.S)
Determination of who is the employerWage and related benefitsOrganisational rightsRights to fair labour practiceSocial Security issuesJob Security
Current Provisions of the Main Agreement on Temporary Employment Services (labour brokers)
Registration of T.E.S with MIBCOWages and Conditions of Employment
ApplicableJoint and Several liabilityRestricted use of T.E.S. with complete ban in
Sector 5 establishments (Fuel dealers)
New Proposed Amendments to Labour Relations Act on T.E.S
• Joint and several liability or deeming provision
• Employee may institute proceedings against either the temporary employment service or the client or both the temporary employment service and the client;• Any order or award made against a temporary employment service or client in terms of this subsection may be enforced against either.
New Proposed Amendments to Labour Relations Act on T.E.S Employees earning below earnings threshold: ”Temporary services” means work for a client by an employee –(a) for a period not exceeding 6 months;(b) as a substitute for an employee of the client
who is temporarily absent; or(c) in a category of work and for any period of
time which is determined to be temporary services by a collective agreement concluded in a Bargaining council, a sectoral determination or a notice published by the Minister
Demand for a 40 Hour Working Week – without loss of pay
Labour Business
More rest and family time – Better quality of work
Insufficient transport system, safety issues
Creation of More Jobs
Shortage of skilled labour
Higher labour costs especially related to overtime payments
RMI – NEEDS BASED PROPOSALSViability and long term sustainability of
businessesThe sustainability of MIBCO as a Bargaining
CouncilFlexibility for employersLess administrationIncreased ProductivityEnabling Environment for BusinessWorkplace disciplineLong term labour peace
NUMSA DEMANDSIncrease scope to include Automotive value chain
i.e. automotive assembly and tyre & rubberOne year duration – July to June cycleR6000 Per month or R30 per hour to be achieved
by 1 July 2016.Actual increases of R30 per hour for all
employees earning above R6000 per monthRemoval of area differentials (Area A wages only)Cashier rate of pay to be at Grade 5Threshold of earnings to be removed
Grading: Skills based, reduction to five grades, with 10% differential between grades
Benchmarking of lowest earning to be 60% of the market highest grade rate
Removal of Peace ClauseFour levels of bargainingRemove Division C and replace with Division
DSafe maternity environment and 6 months
paid maternity leave4 weeks remuneration for every year of
service with no ceiling
Transport pay and allowances for all workersTransport allowance, night shift allowance,
afternoon shift allowances, underground allowances and call out allowances and increases where they exist
40 Hour working weekLabour brokers to be banned100% payment during lay-off or stress relief
fundShop stewards and office bearers to be
granted 30 days paid leaveVoluntary overtime for all workersNormal Sunday rate to be double
All other overtime to be paid at 1 ½ for all employees
Payment for work on public holidays to be three times the ordinary rate of pay to all workers
All training and education to be paid for and conduct during normal working hours
Social Security Fund Contribution IncreasesNormal retirement age to be 60 yearsEmployment Equity and removal of
discriminatory clauses (list provided) – (Not listed grounds as per EE)
MISA DEMANDSThree year agreement13.5% increases on minima and equivalent
monetary increases for all employees regardless of income
13.5% increases on threshold, holiday bonus, AHP, Provident Fund contributions on Commission on earnings, standby and call out allowances, tool allowances and payment of earnings
Retrenchment pay to be paid on earnings and not wages
Short-TimeUniforms
Do we need a war for the attainment of longer term peace
and sustainability?
Business ImperativesBusiness viability and sustainabilityEmployer flexibilityPeace ClausesCycle of AgreementDuration of AgreementTemporary Employment Services (Labour
Brokers)Productivity - Hours of WorkExtension of AgreementsNo Mega-Bargaining Council
IMPORTANT:
Employers must Act in cohesion…
MIBCO NEGOTIATIONS PROGRAMME
1ST Round of Negotiations : 29 & 30 May 20132nd Round of Negotiations: 11 – 13 June 20133rd Round of Negotiations: 27 & 28 June 2013
Further Processes in the event of non-resolution:Dispute DeclarationOne Dispute Meeting within two weeksCompulsory MediationStrike Notice – 48 Hour Notice
“South Africa will only achieve its ambitious poverty-reduction and development goals by accelerating economic growth and ensuring that the economy absorbs more labour” – CDE Report
… this can only be achievable if there is an enabling environment for business
