RMI

MIBCO NEGOTIATIONS : 2013RMI 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 levelLack of leadership/negotiators play messengerPursuance of short term gains at the expense of sustainabilityAdversarial and positional bargaining

Violence during strikesTotal 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 processPicketing strengthening of picketing rules

Legal Challenges with the Collective Bargaining ArenaMEIBC 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-partiesFree 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

RepresentativenessThe 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 - LabourCPI 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 ClauseThe 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.SJoint 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 payLabourBusinessMore rest and family time Better quality of workInsufficient transport system, safety issuesCreation of More Jobs Shortage of skilled labourHigher 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 gradesBenchmarking of lowest earning to be 60% of the market highest grade rateRemoval 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 exist40 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 for all employeesPayment for work on public holidays to be three times the ordinary rate of pay to all workersAll training and education to be paid for and conduct during normal working hoursSocial 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 income13.5% increases on threshold, holiday bonus, AHP, Provident Fund contributions on Commission on earnings, standby and call out allowances, tool allowances and payment of earningsRetrenchment pay to be paid on earnings and not wagesShort-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 PROGRAMME1ST 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