WAGE SCHEDULES 2018 / 2019 - South African Petroleum ...

WAGE SCHEDULES2018 / 2019

MIBCO WAGE INCREASESEffective implementation date: 1 September 2018

TAVehicle Testing Association

UNDERSTANDING THE APPLICATION OF WAGES IN THE MOTOR INDUSTRY

DIVISIONS OF THE MOTOR INDUSTRYDIVISION A

Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which are specifically applicable to office, sales and clerical employees.

Division A also contains definitions and grades of the various employees.

DIVISION B Division B covers all wages and conditions of employment

which are applicable to office, stores, sales and clerical employees.

DIVISION C Division C contains minimum wages for all employees excluding

office, stores, sales and clerical employees.

DIVISION C Division C is divided into five chapters:

Chapter 1 The entire motor industry, other than those specifically covered in Chapters 2, 3, 4 and 5;Chapter 2 Vehicle body builders;Chapter 3 Component manufacturers;Chapter 4 Automotive engineering establishments;Chapter 5 Reconditioning establishments.

DIVISION D Division D covers specific sectoral issues:

Please see definition of the sectors below:

DIVISION D - SECTORSSector 1 Manufacturing (Chapter III); Vehicle body builders (Chapter II);Sector 2 Remanufacturing;Sector 3 Engine reconditioning establishments;Sector 4 Workshops, motorcycle dealers, body repairers, tyre dealers etc;Sector 5 Fuel dealers;Sector 6 Dealerships;Sector 7 Parts and equipment dealers.

THRESHOLDOnly the following clauses in the Main Agreement shall apply to employees whose weekly or monthly remuneration, excluding commission on sales, is more than the rate of R205 433.30 per annum (R198 355 for the purpose of wage increase in Sector 1/Chapter III)

ADMINISTRATIVE AGREEMENTClause 5 – Deduction of Earnings;Clause 13 – Employees Representatives on the Council;Clause 14 – Prohibition of Cession Benefits.

MAIN AGREEMENT – DIVISION AClause 2 – Definitions;Clause 3 – Termination of Service;Clause 4 – Outwork;Clause 5 – Piece Work and Commission Work;Clause 8 – Travelling Allowance;Clause 11 – Sick Leave;Clause 13 – Retrenchment Pay;Clause 15 – Desertion;Clause 16 – Damage to Vehicle or loss of Property or Assets;Clause 17 – Public Holiday;Clause 26 – Annual Leave and Accrued Leave Pay;Clause 31 – Maternity Leave;Clause 33 – Payment of Earnings;Clause 35 – Certificate of Service.

GRADES OF EMPLOYEES EXCLUDING DIVISION B EM-

PLOYEESPlease see job categories on page 3 of this booklet in order to categorise your employees into various grades.

EXPLANATORY NOTES ABOUT WAGE INCREASESThe new wage schedule has been circulated to RMI members. Members are cautioned to treat attempts by third parties to over-simplify the wage agreement with the utmost caution as very pertinent omissions and some incorrect interpretations may be conveyed, which could confuse members and/or cost members. Members wanting to obtain further clarity regarding the application and interpretation of the wage or any other industry agreements, are encouraged to contact local RMI regional offices, where highly skilled legal teams are deployed, offering trade- specific advice and assistance in the application of these wage regulatory measures. You will find the contact details of the RMI regional offices on the back page of the booklet. Members are requested to note the following specific aspects of wage agreements that deserve careful attention:

What is the difference between actual and guaranteed wage increases?Actual wage increase applies to Sector 1 (Chapter III only) of the industry i.e. component manufacturers, and implies a percentage increase on the wage that the employee earns, irrespective of whether that employee earns the minimum wage or not. Guaranteed increase on the other hand, is calculated by applying the percentage increase to the old minimum wage, converting that calculation to a cash value, and applying those cash values to the wage that a specific employee earns. These cash values, calculated for each grade of employment, are the increases applicable to the entire industry except Sector 6 and Chapter III and can be obtained by looking at the guaranteed wage increase schedule. The intention of guaranteed increases is not to penalise those members who pay their employees more than the minimum wage, which will happen if the percentages are applied across the board.

2

Who is legally entitled to a wage increase?Only those employees who earn wages/salaries (gross before overtime allowance and bonuses) below the new threshold of R205 433.30 per year (R198 355 for the purpose of wage increases in Sector 1/Chapter III) are legally entitled to the increase specified in the Wage Table found on pages 4, 5 and 6 of the booklet. Wage increases to those employees earning above the specified threshold are at the discretion of management.

May I offset an increase already given?A member, who has granted increases over and above the prescribed increase during the preceding twelve months, may offset those increases against the increase set out in the schedule below, however no wage increases may be offset on more than one occasion.

What are the additional holiday bonus provisions?All employees, except journeymen and apprentices, earing below the income threshold specified above, are entitled to an annual bonus equal to two weeks’ basic wages or a maximum of R5100.35, whichever amount is lesser. Journeymen and apprentices receive their Additional Holiday Pay annually from MIBCO and the member is therefore not obliged to pay it to these employees directly (these amounts are paid monthly to MIBCO through the returns-system.)

What are the standby and call-out allowance provisions?Any member may require a journeyman or administrative/sales employee to ‘standby’ on any Saturday and/or Sunday, however, such an employee shall be entitled to notice, in writing, of not less than one week to that effect. Whenever an employee is required to stand by, he or she shall be paid, irrespective of whether he or she is required to work while on ‘standby’, a ‘standby’ allowance of not less than R80.52 in respect of each day on which he or she is required to so ‘standby’. Members may call out a journeyman or an administrative/sales employee to work prior to his or her normal starting time or after normal finishing time on any day of the week. However, a call-out allowance of R86.27 shall be paid in each case where such an employee is called out. A call-out allowance may not be paid to an employee in respect of the first call out whilst such employee is paid a standby allowance for that day.

MINIMUM WAGES Minimum wages mean that an employer may not pay less than that which is prescribed for the particular grade or category of employee, unless the employer has obtained an exception from MIBCO. Please note that Dealerships (Sector 6) employees have higher minimum wages than the rest of the industry.

GUARANTEED MONETARY INCREASESGuaranteed monetary increases – the minimum monetary value of increases to be granted to employees who are earning above the minimum prescribed increases at the time when the Agreement becomes effective. Guaranteed monetary increases are not applicable in Dealerships (Sector 6) and Component Manufacturers (Chapter III).

ACTUAL INCREASES – CHAPTER IIIComponent manufacturing establishments (Chapter III) grant actual percentage increases to all employees who are at the threshold of R198 355 per annum or less.

DEFINITION OF SECTORS AND GRADES IN DIVISION CSector 1 Manufacturing establishments, i.e. vehicle body builders,

trailers and caravan manufacturers and warranty repairs, vehicle components and accessories; fibre glass component manufactures, repairs and sales.Sector 2 Re-manufacturing (production) establishments, i.e. component re-manufacturers; brake, clutch and radiator re-manufacturers; drive-train and steering re-manufacturers. Sector 3 Re-conditioning establishments, i.e. automotive engineers; fuel- injection/diesel pump; gearbox/transmission; turbochargers and spring smiths.Sector 4 Service and repair establishments, i.e. motorcycle sales and repairs, batteries, tyre sales, repairs and wheel alignment, tyre re-treaders, exhaust, tow-bar and shock absorber fitters; radio, alarm and immobiliser fitters; sunroof fitters; air-conditioning; body repairers, upholsterers and motor trimmers; auto electrical repairers; auto-valet and steam cleaners; prop-shaft and cv-joint repairers; motor plastic component repairers, glass fitters; carburettor sales and repairs; drive-train fitters and repairers; steering fitters and repairers; motor vehicle, bus, truck and tractor repairers.Sector 5 Fuel dealers, service stations and related establishments.Sector 6 Dealer sales and distribution establishments, i.e. used motor vehicle, bus, truck and tractor sales repairers; franchised motor vehicle bus, truck, tractors and parts sales and repairers; caravan sales repairers; agricultural sales and repairs.Sector 7 Automotive parts, accessories, equipment and tools establishments, i.e. motor parts, accessories, equipment and tools, auto-breakers and used parts dealer establishments.

JOB CATERGORIESThis table enables you to categorise your employees into various grades and divisions. Simply look up the job description and establish into which grade that falls. Then use the wage booklet on these pages to establish the prescribed minimum wage according to the different grades.Grade 1 Char, forecourt attendant.Grade 2 Driver of motorcycle or scooter, general operative, general worker, Grade D employee; vulcaniser’s operative without wheel balancing.Grade 3 Battery repairer, chopper out; driver of motor vehicles with gross mass of up to 3 500kg including forklifts and tractors; new motor vehicle, motor cycle and tricycle assembler; operative gearbox dismantler; operative Grade 1; operative Grade C, scooter worker.Grade 4 Cutter; operative exhaust fitter; operative Grade 2; operative Grade 3; operative Grade AR; operative Grade B, operative Grade BR, operative sunroof fitter; operative upholsterer; operative wheel balancer, pattern cutter maker; supervisor Grade 3l vulcaniser’s operative with wheel balancing.Grade 5 Armature winder; auto electrician’s assistant; body shop assistant; brake drum skimmer; clutch cover assembly setter; diesel pump room assistant; driver of motor vehicle with a gross mass over 3 500kg; motor cycle mechanic’s assistant, operative air-conditioner fitter; operative Grade 4; operative Grade 5, operative Grade BV; operative Grade CR; operative Grade CV; operative Grade DV; operative radio/alarm fitter; operative supervisor quality controller; radiator repairer; repair shop assistant; seaming machinist; supervisor; supervisor Grade 4.Grade 6 Clutch and brake operative; machine setter; operative Grade A; senior quality controller; supervisor Grade 5 wheel alignment worker.Grade 7 B/A journeyman, exempted journeyman; operative engine assembler.Grade 8 Journeyman, service supply salesman.

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4

DIVISION C, CHAPTER 1 - CLAUSE 3 - WAGES

WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2018

Class of employee CHAPTER 1

Areas A Other Areas

Per week Per hour Per week Per hour

Grade 1Forecourt AttendantParking Garage AttendantCashierChar (Sector 5)*CharGrade 2Grade 3Grade 4Grade 5Grade 6

1 313.55752.40

1 382.401 039.95

982.351 319.401 427.851 559.701 738.802 089.35

29.1916.7230.7223.1121.8329.3231.7334.6638.6446.43

1 313.55752.40

1 382.401 039.95

982.351 315.351 427.851 559.701 738.802 089.35

29.1916.7230.72 23.1121.8329.2331.7334.6638.6446.43

CHAPTER 1

Areas A Other Areas


1 029.151 378.801 480.501 616.401 793.252 135.25

22.8730.6432.9035.9239.8547.45

1 029.151 366.651 480.501 616.401 793.252 135.25

22.8730.3732.9035.9239.8547.45

SECTORS 4, 5 & 7 ONLY SECTORS 6 ONLY

Class of employee All Areas All Areas


Grade 7Grade 8Watchman

2 601.902 974.501 201.81

57.8266.10

no hourly rate

2 632.953 007.801 244.82

58.5166.84

no hourly rate


Per week Per hour

Grade 1Forecourt AttendantParking Garage AttendantCashierChar (Sector 5)*CharGrade 2Grade 3Grade 4Grade 5Grade 6

97.2049.0590.4572.4564.3586.4093.60

102.15113.85136.80

2.161.092.011.611.431.922.082.272.533.04

Guaranteed Increases*

All Areas

Class of employee All Areas

Per week Per hour


170.10194.4078.62

3.784.32

no hourly rate

APPRENTICES All Areas and Chapters

Per week Per hour

Three year tradesFirst yearSecond yearThird year

Four year tradesFirst yearSecond yearThird yearFourth year

1 495.351 854.452 279.25

1 495.351 640.251 854.452 279.25

33.2341.2150.65

33.2336.4541.2150.65

ALL AREAS

LEARNERS ALL CHAPTERS

NQF LEARNERSHIPS CBMT


Level 1Level 2Level 3Level 4

1 495.351 640.251 854.452 279.25

33.2336.4541.2150.65

1 426.051 780.652 140.652 491.65

31.6939.5747.5755.37

* Not Applicable toSector 6

Establishments

*Guaranteed increases as prescribed for Chars in Sector 5 only.Sector 5 Wage increases have been confirmed by the Department of Energy and will come into effect on 05 September 2018

Annexure “A”

5

Per week

Setting bonus 5.00

MEASURING INSTRUMENT BONUS

CHAPTER 3 13.80

Vernier/micrometer Tape/rule/square/sets

13.809 .20

APPRENTICE AND LEARNERSHIP WAGESALL CHAPTERS

Class of Employee All Areas

Per week Per hour

Three year tradesFirst yearSecond yearThird yearFour year tradesFirst yearSecond yearThird yearFourth yearNQF LearnershipsLevel 1Level 2Level 3Level 4CBMT Level 1Level 2Level 3Level 4

1 495.351 854.452 279.25

1 495.351 640.251 854.452 279.25

1 495.351 640.251 854.452 279.25

1 426.051 780.652 140.652 491.65

33.2341.2150.65

33.2336.4541.2150.65

33.2336.4541.2150.65

31.6939.5747.5755.37


SECTOR 2

All Areas

Per week Per hour

Grade 1Grade 2Grade 3Grade 4Grade 5Grade 6

982.351 319.401 427.851 559.701 738.802 089.35

21.8329.3231.7334.6638.6446.43


Per week Per hour


2 601.902 974.501 201.81

57.8266.10

no hourly rate

Class of employee CHAPTER 2 CHAPTER 3 *

All Areas All Areas


Grade 1Grade 2Grade 3Grade 4Grade 5Grade 6

982.351 319.401 427.85

0.001 738.802 089.35

21.8329.3231.730.00

38.6446.43

1 049.851 382.401 495.351 633.051 821.602 186.10

23.3330.7233.2336.2940.4848.58

CHAPTER 4

Areas A Other Areas


982.351 319.401 427.851 559.701 738.802 089.35

21.8329.3231.7334.6638.6446.43

982.351 319.401 427.851 559.701 738.802 089.35

21.8329.3231.7334.6638.6446.43

SECTOR 1 SECTOR 1 SECTOR 3

Class of employee All Areas All Areas All Areas All Areas

Per week Per hour Per week Per hour Per week Per hour


2 601.902 974.501 201.81

57.8266.10

no hourly rate

0.003 144.901 235.80

0.0069.22

no hourly rate

2 601.902 974.501 201.81

57.8266.10

no hourly rate

DIVISION C, CHAPTER 2 - 5: CLAUSE 3 - WAGES


Provisions for Chapter 4 Operatives

MINIMUM Per week Per hour Per week Per hour

Operative engine assemblerFirst 18 months of experience Thereafter Operative, Grade AFirst 12 months of experience Thereafter Operative, Grade BFirst 6 months of experience Thereafter

1 738.802 601.90

1 738.802 089.35

1 427.851 559.70

38.6457.82

38.6446.43

31.7334.66

113.85170.10

113.85136.80

93.60102.15

2.533.78

2.533.04

2.082.27

Annexure “A”

* 7.5% Increase on actual earnings with effect from 1 September 2018 for Chapter 3 Establishments

CHAPTER 2 SETTING BONUS GUARANTEED INCREASES

SECTOR 6 ONLY

Class of employee Minimum Wages

Areas A Other Areas

Per week Per month Per week Per month

(a) Office, stores, sales and clerical employeesDuring first year of experience During second year of experienceDuring third year of experienceThereafter(b) Motor vehicle sales personsDuring first year of experienceThereafter(c) Bookkeeper(d) Accountant(e) Parts sales personsDuring first year of experienceThereafter

1 270.971 447.931 668.811 934.41

1 502.541 937.492 463.844 210.33

1 572.581 923.83

5 507.546 274.367 231.518 382.44

6 511.018 395.7910 676.6418 244.76

6 814.518 336.60

1 270.971 447.931 668.811 934.41

1 502.541 937.492 463.844 195.38

1 572.581 923.83

5 507.546 274.367 231.518 382.44

6 511.018 395.7910 676.6418 179.98

6 814.518 336.60


Per week Per month

(f) TravellerDuring first year of experienceThereafter(g) Supply sales personsDuring first year of experienceDuring second year of experienceDuring third year of experienceThereafter(h) Part-time employees

1 572.581 923.83

1 572.581 801.712 019.192 166.96

*

6 814.518 336.60

6 814.517 807.418 749.829 390.16

*

SECTORS 1(CH 2),2,3,4,5,& 7

GUARANTEED INCREASES

Per week Per month

81.4792.96107.06124.29

98.30126.73159.80271.85

102.46125.86

353.04402.83463.93538.59

425.97549.16692.47

1 178.02

443.99545.39

102.88125.86

102.88117.84132.10141.76

445.81545.39

445.81510.64572.43614.29

All Areas

Annexure “B”

DIVISION B & D - CLAUSE 3 (WAGES) - ALL CHAPTERS & SECTORS


Class of employee Minimum Wages

Areas A Other Areas

Per week Per month Per week Per month

(a) Office, stores, sales and clerical employees During first year of experience During second year of experienceDuring third year of experienceThereafter(b) Motor vehicle sales personsDuring first year of experienceThereafter(c) Bookkeeper(d) Accountant(e) Parts sales personsDuring first year of experienceThereafter

1 245.311 420.921 636.451 899.89

1 502.541 937.212 442.684 155.39

1 566.121 923.83

5 396.346 157.327 091.288 232.86

6 511.018 394.5810 584.9518 006.69

6 786.528 336.60

1 245.311 420.921 636.451 899.89

1 502.541 937.212 442.684 155.39

1 566.121 923.83

5 396.346 157.327 091.288 232.86

6 511.018 394.5810 584.9518 006.69

6 786.528 336.60

DIVISION B & D - CLAUSE 3 (WAGES) - ALL CHAPTERS & SECTORSWAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2018

SECTORS 1,2,3,4,5,& 7


Per week Per month

(f) TravellerDuring first year of experienceThereafter(g) Supply sales personsDuring first year of experienceDuring second year of experienceDuring third year of experienceThereafter(h) Part-time employees

1 572.581 923.83

1 572.581 801.312 019.192 166.96

*

6 814.518 336.60

6 814.517 805.688 749.829 390.16

*

* One-eleventh of the minimum weekly wage as prescribed for clerical employees in (a) hereof, for ordinary time worked on each day in any one week, or one forty-fifth of such prescribed minimum weekly wage for each hour or part of an hour of ordinary time worked in any one week,

whichever is the greater.

The RMI is a proactive, relevant, retail and associated motor industry organisation recognised as the leading voice in South Africa’s automotive

aftermarket, serving the daily needs of its members and playing a key role in enabling motor traders to deliver top class service to motoring consumers. Here are the associations which fall under its umbrella…

ACRA (Automotive Component Remanufacturers’ Association)ACRA represents component remanufacturers involved in the remanufacture of safety-critical components and radiators, an ever-growing industry in which keeping abreast of change is crucial for business owners.

ERA (Engine Remanufacturers’ Association)ERA represents motor engineers who re-machine, rebuild and remanufacture engines in South Africa. ERA members promote the reuse of engines, parts and components in a manner that is green and sustainable. ERA members create employment and skills development opportunities, directly in their own machine shops and indirectly through suppliers to the industry and component manufacturers.

MDA (Motorcycle Dealers’ Association)MDA represents members who are motorcycle dealers – these members benefit from an extensive array of value-add services and products such as commercial insurance, labour legal assistance and representation, consumer dispute resolution, and a strong relationship with the Association of Motorcycle Importers and Distributors.

MIMA (Motor Industry Manufacturers’ Association)MIMA members are Parts, Equipment and Component Manufacturers and suppliers to Original Equipment Manufacturers and the automotive aftermarket that exports into Africa and other countries in the world.

MIWA (Motor Industry Workshop Association)MIWA, the largest association within the RMI, strives to keep its members informed about the ever-changing auto repair industry, thereby ensuring that vehicles are repaired to acceptable standards designed to make them perform better and safely on South African roads.

MPEA (Motor Parts and Equipment Association)MPEA represents South Africa’s auto part traders, including wholesalers, retailers and independent operators in the replacement motor parts industry. Genuine replacement parts are available at accredited MPEA spares outlets at affordable prices, backed by the manufacturer’s warranty.

NADA (National Automobile Dealers’ Association)NADA represents the interests of business people who own or operate new vehicle franchise dealerships and qualifying used vehicle outlets. NADA is committed to the image enhancement of the retail motor business, facilitating the interface between dealers and OEMs/distributors, building relationships between dealers and customers and bringing relevant industry issues to the attention of government.

CONSTITUENT ASSOCIATIONSWho do they represent and what are their objectives?

VTA (Vehicle Testing Association)The VTA represents private vehicle testing stations that are committed to operating within the law in accordance with the Road Traffic Act and the relevant SANS standards. In this highly regulated environment, the association represents the interests of its members at government working groups and is committed to enhancing the reputation of the industry in all the spheres.

SADFIA (South African Diesel Fuel Injection Association)SADFIA members operate fully equipped pump rooms aimed at providing cost-effective service solutions for owners of diesel powered vehicles seeking fuel injection system testing, repair or replacement.

SAMBRA (South African Motor Body Repairers’ Association)SAMBRA is an active leader in the motor body repair industry and consolidates, communicates and regulates repair standards in the motor body repair industry. SAMBRA ensures the provision of technical and business skills training that meets the demands of the industry and instils confidence in consumers and industry stakeholders.

SAPRA (South African Petroleum Retailers’ Association)SAPRA represents and promotes the interests of petroleum retailers in South Africa and fosters strong relationships with the Department of Energy, oil companies, banks, financial institutions and other stakeholders that have an impact on the sustainability of the service station industry.

SAVABA (South African Vehicle and Bodybuilders’ Association)SAVABA members are professional, certified and regulated vehicle body builders in South Africa who manufacture commercial vehicle body applications (tanker, coal, refrigerated trucks and trailers) and bus bodies (commuter and tourist type). Members manufacture using the latest equipment and highly trained staff to ensure strict compliance with SABS standards and other legal specifications.

TDAFA (Tyre Dealers' and Fitment Association)The TDAFA is the only representative body for tyre dealers nationally. The association works on all issues relevant to tyres and the fitment industry. Strategically, the TDAFA is positioned as an intermediary between government, the tyre industry and consumers and is recognised by government and industry leaders as the legitimate voice representing tyre dealers.

RMI contact detailsHead Office: 011-886-6300 | www.rmi.org.zaSurrey Square Office Park, 330 Surrey Avenue, Ferndale, Randburg, 2194 RMI Regional Offices: Highveld: Randburg: 011-886-6300; Northern: Pretoria: 012-348-9311; KwaZulu-Natal: Durban: 031-266-7031; Eastern Cape/Border: Port Elizabeth: 041-364-0070; Western Cape: Cape Town: 021-939-9440; Free State/Northern Cape: Bloemfontein: 051-430-3294


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JohannesburgTel: (011) 886 6300

General Manager: Jeff Molefe

IR specialist: Jeff Molefe

DurbanTel: (031) 266 7031

General Manager: Erwin Stroebel

IR specialist: Janina Kalidass

Cape TownTel: (021) 939 9440


IR specialist: Brent Barichievy

IR specialist: Johanita Olivier

PretoriaTel: (012) 348 9311


IR specialist: Jeff Molefe

BloemfonteinTel: (051) 430 3294


IR specialist: Jacques Viljoen

Port ElizabethTel: (041) 364 0070


IR specialist: Eckhardt Oelofse

IR specialist: Nolubabalo Mjila (East London)

For further information please contact your local RMI regional office


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