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NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY PowerPoint Presentation
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NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY

NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY

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NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY

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  1. NATIONAL BARGAINING COUNCIL FOR THECLOTHING MANUFACTURING INDUSTRY WAGE CLERK’S COURSE

  2. COURSE LAYOUT: Designated Agent: • Experience • Differential Rates [Clause 6] • Incremental Dates [Clause 4(4)] • Calculation of wage and date increments • “Across The Board Provision”[Clause 4(11) - the Clothing ,Knitting and Country Areas Agreements] • Aggregation of overtime provisions [Clause 10(1)(d)] • Shift provisions

  3. Designated Agent: • Engagements, Terminations, Absence from Work and Transfer in Occupation [Clause 16] • Sick leave provisions for party and non-party members [Clause 26] • Annual leave and paid holidays • Annual Bonus [Clause 4 (9)] • Maternity leave provisions [Clause 30]

  4. Designated Agent: 13. Factory inspections – when an agent visits a factory: • Powers of a designated agent of a Bargaining Council in terms of Section 33(1)(A) and as set out in Schedule 10 of The Labour Relations Act, Act 66 of 1995, as amended • Purpose of the visit • What to have ready

  5. James Mentor – Financial Manager: 14. Financial and administrative methodologies of the Chamber: • Background • Methodology employed in invoicing cycle • Prescribed forms • Important administrative dates • Role Of Client Information Officer • Housing accounts • Other • Questions

  6. Charlotte Coon – Benefit Admin. Manager: 15. Provident Fund: • Benefits administered by the fund • Maternity benefits • Management of disability cases • Housing / Cession loans

  7. Sophy van der Berg – Clinical Director: 16. Health Care Fund: • Definitions • Membership and level of contributions • Health care fund benefits • General rules • Exclusions • Exemption applications

  8. Joseph Williams – Labour Affairs Manager: 17. Compliance Certificates: • Requirements to qualify for this certificate • Advantages 18. Exemption applications as per Clause 19 of the Main Agreement requirements: • Party exemptions and Non-party exemptions • Individual wage exemptions • All other exemptions except social fund exemptions • Exemptions application from social fund • Exemptions Committee – Nuts and bolts of the application • Appeal procedure to the Independent Exemptions Board 19. Enforcement procedure of the Council in terms of administrative and financial requirements: • An overview of the Council’s enforcement procedure will be given • Skills placement centre

  9. Designated Agent

  10. 1. Experience: 1. Overview: • For the purpose of Clothing and Garment knitting sectors: • All experience counts, in all areas. • Experience in the Millinery Industry counts on its own. 2. Experience gained in the Clothing and/or Knitting sectors are as follows: • Experience gained in the Magisterial districts defined in the Main and – Knitting Agreements of the Western Cape Region, Country Areas Agreement – covering the magisterial districts of George and Worcester only and experience gained in magisterial districts as defined in the Non Metro agreement. • Experience gained in magisterial district areas defined as per the other regional councils. • Service record card and or certificate of service issued by regional council and or documentary proof of employment provided by the employer.

  11. 3. Authenticity of documentary proof of previous experience: • Onus on firm to determine that. • To verify with previous employer or with local Bargaining council or other Regional Bargaining Councils. 4. NOTE: • Experience contravention: • It is a contravention of the Council’s Main - Knitting and Country Areas Agreements to employ employees without service record cards if they have previously worked in the formal clothing or knitting industry. • See clause 16(a) and clause 16(c)

  12. 5. Procedure to be followed before an employee can be employed: 1. Question employee if worked in the formal Clothing or Knitting industry: • Metro or Non Metro areas or where applicable clerical experience gained outside the jurisdiction of the Bargaining Council (i.e. irrespective of the industry the experience was gained). 2. If the employee answers in the affirmative: • Request to produce the service record card. • If card cannot be produced by the employee (i.e if the card was lost or handed in at the provident fund dept to apply for benefits): • The employee is not allowed to be employed as yet and employee should personally collect a copy of the service record card and a certificate of service at the Bargaining Council. 3. If the employee has worked in the jurisdiction of other regional Bargaining Councils: • Certificate of service or documentary proof of experience should be produced and submitted under cover of a completed BC2 form and completed reverse side of the BC2 form to credit the employees previous experience.

  13. Procedure to be followed before an employee can be employed continued: 4. If the employee has never worked in the industry before: • The employee should make a declaration as provided on the reverse side of the BC2 form to the effect that the employee has never worked in the clothing industry before. 5. In the event of the Bargaining Council detecting, at the time of registration of the employee, that the employee has gained previous experience: • It would normally coincide with the need to adjust the employees wage. • The firm is then advised to the effectthat the employee has made a false declaration and will confirm the experience and advise the adjusted wage due and issue a new service record card reflecting the updated experience. • It is important to note that if the firm failed to require the employee to sign the declaration on the reverse side of the BC2 form, the firm will be liable for the wage underpayment from date of engagement of the employee and not from date detected by the Bargaining Council.

  14. 6. NOTE: • Experience on the service record card may not always reflect employees full experience: • Employee may work as a casual, the service record card not handed in by the employee nor requested by employer. • Service record produced by employee but the full experience is not reflected on service record card. • Employer should contact the Bargaining Council and verify the employee’s experience and should request the issue of a certificate of service.

  15. 7. Experience to be taken into account: 1. Clerks and Factory Clerks: • Irrespective of the trade in which such experience was gained. • Not to be taken into account for the purpose of experience in any other capacity. • Experience counts on its own. 2. Clothing Machine Mechanics, Motor Vehicle Drivers, Boiler Attendants, Dispatch Packers, Travelers Drivers, Watchman or Care Takers, Labourers, General Workers, Supervisors, Quality Controllers, Instructors and Clothing Technicians: • Not to be taken into account for the purpose of experience in any other capacity. • Experience counts on its own.

  16. 8. Note: • Experience to be taken into account: • Provided that any employee, with less than one years experience, has not been re employed in the industry within a period of five years from date on which he was last employed in the industry, any experience gained shall be ignored for the purpose of calculating the minimum wage at which he may commence service. • Nothing in this part of the agreement shall operate to reduce the wage which was being paid immediately prior to or to which any employee was entitled at the date of commencement of this part of the agreement whilst such employee is employed by the same employer. The provisions of this sub clause shall also apply in the case of any employee whose services are terminated by such employer subsequent to the date of commencement of this part of the Agreement and who is re engaged by such employer.

  17. Note continued: • Experience to be taken into account: • In instances when employees are not making the grade and are being transferred to a lower paid occupation or become disabled or due to ill health or for operational requirements, exemption could for. In the absence of a successful wage exemption, a wage claim will be instituted against such an employer. • In the second instance when an employee is terminated by an employer and subsequently re engaged by the same employer, the employer cannot reduce the wage on re engagement. The firm would, e.g. however have grounds for exemption in the event of the employee being offered another occupation in a lower paid occupation, being unable to re engage the employee in the same position e.g. supervisor being offered a position as a machinist.

  18. 2. Differential Rates [Clause 6]: 1. Overview: • If an employee is required to, in addition to his own work, perform the work for longer than an hour in the aggregate on any day for which: • A wage higher than that of his own class • A rising scale of wages terminating in a wage higher than that of his own class is prescribed, in sub clause (1), to pay such employee in respect of that day. 2. In the case of a wage higher than that of the employee’s own class (first point in overview): • not less than one–fifth of the higher weekly wage prescribed in sub clause (1) 3. In the case of a rising scale of wages terminating in a wage higher than that of an employee’s own class (second point in overview): • not less than one–fifth of the highest weekly wage prescribed in sub clause (1) for the highest wage.

  19. 4. Example: An employee, earning R563.50pw as a passer, was required in addition to her duties as passer to perform the duties of a supervisor on 11 Sep 2006 (for 55mins), 12 Sep 2006 (for 1hr 20mins) and 15 Sep 2006 (for 4hrs). Wage due for period 11 September 2006 – 15 September 2006: • 11 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw) • 12 Sep 2006: R 142.57 - 9hrs x hourly rate of a supervisor (R678.00pw) • 13 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw) • 14 Sep 2006: R 119.32 - 9hrs x hourly rate of a passer (R 563.50pw) • 15 Sep 2006: R 103.69 - 6.5hrs x hourly rate of a supervisor (R 678.00pw) TOTAL: R 604.22 - 42.5hrs

  20. 3. Incremental Dates [Clause 4(4)]: 1. Overview: • Allemployees who qualify for an increase during the period 1 Jan - 31 Mar of the calendar year shall be granted such increases with effect from the pay week in which the 15 Feb of such year falls. When an employee is not in employment during the said pay week he shall become entitled to the increase with effect from the date he is employed. • Likewise, and in the same manner, all increases become due during the periods 1 Apr - 30 Jun, 1 Jul - 30 Sep and 1 Oct - 31 Dec of each calendar year shall be granted to employees with effect from the pay week in which 15 May, 15 Aug and 15 Nov fall within the respective periods. • In practical terms this means the following: • Increases due Jan – Mar: Due in pay week in which the 15th Feb falls • Increases due Apr – Jun: Due in pay week in which the 15th May falls • Increases due Jul – Sep: Due in pay week in which the 15th Aug falls • Increases due Oct – Dec: Due in pay week in which the 15th Nov falls

  21. Overview continued: • Incalculating whether an employee qualifies for an increment: • All periods of absence from work shall be counted, except any absence without pay for a continuous period in excess of four consecutive pay weeks and in respect whereof full particulars of the name of the employee and the period of absence have been advised to the Regional Chamber within 14 days of the employee resuming work • In this regard it is further noted that any period an employee is on maternity leave would not count for experience when calculating incremental dates. • Not to be taken into account for the purpose of experience in any other capacity. • Experience counts on its own.

  22. 4. Calculation of Wage and Date Increments: 1. To simplify the process: • for the purpose of calculating the number of days in an incomplete month each calendar month will be regarded as having 30 days and not 28 days as normally the case for Feb or 31 days as is the case for Mar. • A completed month will, e.g. run from 16 Feb 8to the preceding day in the following month (i.e.15 Mar 2008) and not till 16 Mar 2008!!! • Saturdays and Sundays: • non working days are taken into account when calculating experience. • In all the following examples, the week ends on a TUESDAY. • Period of experience: 16 Feb 2008 – 31 Mar 2008 = 1 month 15 days

  23. 4.2.1 Example 1: • Engagement date: 28 March 2008 • Previous experience: 11 months 28 days (grade c) • Occupation: Line feeder

  24. 4.2.2 Example 2: • Engagement date: 30 July 2008 • Previous experience: 1 year 4 months as a machinist • Occupation: Machinist

  25. 4.2.3 Example 3: • Engagement date: 20 February 2008 • Previous experience: 2 years 6 months 10 days as a cleaner • Occupation: Machinist

  26. 4.2.4 Example 4: • Engagement date: 5 April 2008 • Previous experience: • 3 years 5 months as a cleaner (grade c) • 5 months 2 days as a machinist (grade b) • Occupation: Machinist

  27. 4.2.5 Example 5: • Engagement date: 6 June 2008 • Previous experience: 1 year 11 months 15 days as a presser (grade a) • Occupation: Presser

  28. 4.2.6 Example 6: • Engagement date: 1 July 2008 • Previous experience: 1 year 25 days as a factory clerk • Occupation: Factory Clerk

  29. Note: Qualifying Periods All job categories with qualifying periods in excess of 24 months shall be reduced by 2 months as from 1 September 2008 In practice this means that, for example, In the instance of a cutter the 30 month qualifying period with six monthly increments is reduced to 28 months from 1 September 2008, while the last increment period is reduced from 6 to 4 months. Factory Clerks and Clerks: • Learnership period: 2 years and 4 months • Increments on yearly basis during the first 2 years of learnership. • Final increment due 4 months thereafter. • Factory Clerks and Clerks experience counts on it own (see example hereafter).

  30. 5. Note: • 2001 Allowance: • Please be reminded that the 2001 allowance coinciding with 6 monthly increments of unqualified employees should equally be adjusted, e.g. allowance grade c employee: • 1st 6 months of experience = R4.45 • 2nd 6 months of experience = R4.57

  31. 5. “Across The Board Provision”[Clause 4(11)] - The Clothing, Knitting and Country Areas Agreements: 1. Overview: • This wage of an employee who is employed at a Clothing and or Garment Knitting establishment and who, immediately prior the date on which a new Agreement comes into operation, is in receipt of a wage higher than that prescribed for the class of work in which he is engaged, shall with effect from the date on which the new Agreement comes into operation, be increased by an amount equal to the difference between the wage prescribed in the previous agreement and the wage prescribed in the new agreement.

  32. 5.2.1 Example 1: • Engagement date: 15 August 2008 • Previous experience: Nil • Occupation: Machinist

  33. 6. Aggregation of Overtime Provisions [Clause 10(1)(d)]: 1. For the purpose of determining the number of hours, or part thereof, which an employee should be paid overtime rates: • The hours worked outside the employee’s normal working hours in terms of Clause 9 of this agreement may be reduced by the number of hours, or part thereof, in that pay week the employee was absent. 2. Provided that no reduction of overtime worked by an employee shall be made should the absence be as a result of the following: • Time not worked as a result of protected/industrial action. • Time not worked as a result of a public holiday as declared in terms of the Public Holidays Act. • Time not worked as a result of the employer having declared short time. • Time not worked as a result of the employee being on authorized shop steward time off. • Time not worked as a result of any authorized absenteeism

  34. 6.3.1 Example 1: • Pay week ending: 12 September 2006 (6 Sep 2006 – 12 Sep 2006) The employee worked the following normal and overtime hours in that pay week: Total overtime worked: 8 hours Hours absent: 9 hours • In terms of the aggregation provision the 8 hours overtime worked in the pay week the employee was absent should be reduced by the number of hours that the employee was absent (9 hours), meaning that the 8 hrs worked outside the normal hours should be paid at normal and not at overtime rates.

  35. Therefore the payment due would be: Normal hours: 33 hours 30 minutes Sick leave: 9 hours Overtime: Nil (8 hours overtime – 9 hours absent) Normal hours: 8 hours Total payment due: 50 hours 30 minutes (at normal time rate)

  36. 6.3.2 Example 2: • Pay week ending: 12 September 2006 (6 Sep 2006 – 12 Sep 2006) The employee worked the following normal and overtime hours in that pay week:

  37. Therefore the payment due would be: Normal hours: 34 hours 45 minutes Overtime: Nil Total absence: 45 minutes late coming + 6 hours 30 minutes sick leave Normal hours: 6 hours (overtime payment due at normal rate) Saturday: 1.25 (at normal rate) 2.75 (at 1.5 the hourly rate) 5 hours - after 12PM (double the hourly rate) Sunday: 17 hours (at normal rate)

  38. 4. Note: • Overtime: • Please note that in addition to overtime worked by an employee during a pay week (Mondays - Fridays) which may be reduced by the time an employee was absent during that pay week and which portion may be paid at ordinary rates equally applies i.r.o any time worked on a Saturday and/or a Sunday. • Please note that the hours overtime worked or hours worked on a Saturday/Sunday, or parts thereof, worked in a pay week can only be reduced by the number of hours of absence in that same pay week.

  39. 7. Shift Provisions: • Overview: • In terms of Clause(1)(b) of the Clothing Agreement, clothing establishments are required to give the Council at least 15 working days notice of the intention to work shifts, and is further required to consult with the trade union in this regard. This requirement is not applicable to knitting establishments. • The other requirements of shift work and the overtime provisions for clothing and knitting establishments are identical and are as follows: • A shift worker’s ordinary hours of work = 42.5 hours per week. • This may be worked on any day from Sunday to Saturday [Clause 9(1)(b)]. • Sundays and Saturdays could be a normal work day for a normal shift worker, provided that where two shifts are employed daily. • Limited to 9 hours on any day and where 3 shifts are worked on any day 8 hours per day. • The shift operation at knitting plants are normally run 24 hours a day over 5 days varying between 2 x 12 hour shifts or 3 x 8 hour shifts over a 24 hour period.

  40. Note: • Shift provisions: • Shift allowance of 12.5% is payable in respect of shift hours worked, i.e. 12.5% on total earnings (normal time and overtime). • Please note that employees normally alternate between day and night shifts and the shift allowance is payable i.r.o day and night shifts [Clause 3(9)].

  41. 2. Example 1: • Shift: 2x12hour shifts per day x5days per week The employee worked the following shifts: Normal time: 42 hours 30 minutes Overtime: 15 hours per week (3 hours per day x 5 days)

  42. 3. Note: • Shift provisions: • Please note that in the instance where 3 shifts are worked over 24 hours each shift can only be 8 hours but employees are required to be paid the full weekly wage based on 42.5 hours in terms of Clause 4(3) basis of contract. • You are reminded that an employer may make mutual arrangements with his normal shift workers to work 42.5 hours on night shift, excluding meal intervals, in any week Monday to Thursday (four day week). See Clause 9(1)(b) • Although 12 hour shifts over 5 days is a common practice in the knitting division, exemption is required as the 3 hours daily and 10 hour weekly limitation is equally applicable as in the case of day workers. • Exemption also need to be sought for and additional shift.

  43. 4. Calculation of overtime: Normal hours: 42.5 Overtime hours: 57.5 (26 hours 30 minutes at 1.5 the hourly rate) Saturday: 42.5 (15 hours + 11.5) 11 hours 30 minutes (work on Saturday) Entire Saturday at 1.5 the hourly rate Sunday: 11 hours 30 minutes due 11hrs 30min at double the ordinary rate = 23 hours pay day of rest in terms of Clause10(5) payment due in terms of Clause11(7) read with Clause 11(3)

  44. 5. Twilight shift provisions – Clause 9(6) 5.1 The definition of a twilight worker (Clause 3(f)) : • Twilight shift worker means an employee, other than a normal shift worker, employed any time between the hours 16:30 and 23:00 on any day from Monday - Friday with the specific intent of being employed on twilight shift and who is not ordinarily employed by the employer who has introduced the twilight shift or any other employer. • Twilight shift means a shift, other than a normal shift, introduced by an employer between the hours 16:30 and 23:00 on any day from Monday - Friday.

  45. 5.2 Ordinary hours of work [Clause 9(i)]: • Any time between 16:30 and 23:00 on any day from Monday - Friday. 5.3 Twilight Shift [Clause 9(6)]: • General Provisions: • Unemployed people may be recruited for working this shift. • Notwithstanding the provision of sub clause 1(a) above, supervisory and management staff from the existing staff complement of the employers business may be employed on a twilight shift. • A twilight shift worker may only operate between the hours 16:30 to 23:30 daily from Monday – Friday.

  46. 5.4 Employment conditions: • All provisions contained in this part of the Agreement, unless specifically excluded, shall be applicable to employees on a twilight shift. • The remuneration payable to a twilight worker shall accrue at an hourly rate. • A twilight worker shall not be entitled to payment of a shift allowance. 5.5 Transport arrangements: • The cost of transport from the place of work to the home of employees will be funded by the employer and/or • The employer will be responsible for the arrangements and expenses of transport from the work place to the homes of the employees at the conclusion of a twilight shift, provided that where an employer and employee agree that the employee shall make the practical arrangements for transport home, this shall be permissible provided the employer shall still be responsible for the costs of such transport. 5.6 Note: • Twilight worker: • A twilight worker may not be required to work on a Saturday or on a Sunday. • See Clause 11(1)(e) and 11(10)(f)

  47. 5.7 Productivity Incentive • Employers shall pay an amount of 0.5% of the weekly wage into a dedicated productivity incentive bank account. This must be done on a weekly basis or on the date that wages is normally paid, if it is paid at a time other than weekly. • The money in this productivity incentive bank account is ring-fenced for the introduction of plant level productivity incentive schemes only • This productivity incentive scheme bank account shall be opened and authorized on the basis of co-signatures as follows: • A person nominated by management plus a SACTWU shop steward (where there are no shop stewards at a workplace, a representative nominated by the workers shall be the second signatory) • With effect from 1 September 2008, each workplace shall have a period of 2 months within which they must reach agreement between management and the union about how the productivity incentive scheme at that work place will function and how the incentives are to be paid. • If there is no productivity incentive scheme agreement reached by 1 November 2008, all the monies in the productivity bank account must be paid out to the workers as part of their wages, until an agreement on an appropriate productivity incentive scheme is reached.

  48. The productivity incentive scheme agreements reached must ensure that all workers are covered by the terms of this agreement, not just some, shall benefit from the incentive scheme. • All productivity scheme agreements reached must be registered with the National Bargaining Council for the Clothing Manufacturing Industry, within 1 month after agreement has been reached. • Productivity incentive scheme agreements shall not contain any provisions which have the effect of downward variation of any term or condition of employment • The productivity incentive scheme envisaged in this agreement shall be in addition to and not in place of any existing productivity incentive scheme which may currently exist. • If the workplace closes or is liquidated, all the money left in the productivity account must be paid out to the employees at that workplace and who are covered by the terms of this agreement

  49. Designated Agent

  50. 8. Engagements, Terminations, Absence from Work and Transfer In Occupation [Clause 16]: 1. Engagement procedure: • No employee may be employed without a Service Record Card if previously employed in the Industry refer Clause 16(a) and 16(c). • Employee must be sent to the Council for a duplicate Service Record Card. • Interview employee immediately and obtain all relevant details such as full name, home address and dependants. • Complete application / Details of Dependants incase of new entrant and existing members (BC 2). • Complete dependant advice (BC2). • Determine job to be performed by employee (ask Manager or Supervisor). • Prepare clock cards. • Examine Service Record Cards, check all entries, observe transfers in occupation, e.g. Cleaner to Machinist, assess experience.