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MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS

MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS. Strike Wave. January 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 – Busses

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MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS

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  1. MIBCO NEGOTIATIONS : 2013 RMI MANDATING MEETINGS

  2. Strike Wave • January 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 – Busses • The future???

  3. Lonmin Strike - Marikana • Wage Demands – R12 500 per month • Protests against housing, water supply and running water (Socio-economic issues) • Migrant workers – higher living costs • AMCU members • Disgruntled NUM members • Effects on COSATU and its affiliates and subsequent negotiations

  4. Farmworkers strike • Sectoral Determination • Violent strikes and damages • R69 per day to R105 per day

  5. Challenges in Collective Bargaining • Violent and protracted strikes • Political and party structure based negotiations rather than membership needs • Increased disregard for rule of law • Increasing legal challenges • Lack of capacity in negotiating teams • Unrealistic demands/unreasonable expectations • Ineffective feedback/communication/dissatisfaction at grassroots level • Lack of leadership/negotiators play messenger • Pursuance of short term gains at the expense of sustainability • Adversarial and positional bargaining

  6. Violence during strikes • Total disregard to rule of law • Striking 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

  7. 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 Foundation • Capes vs. Minister of Labour, Motor Industry Bargaining Council and Parties to Council

  8. Extension in terms of S32 of LRA Bargaining 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

  9. Representativeness • The importance of representativeness • MIBCO - Certificate of representativeness

  10. The Role of MISA • On 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

  11. Bases for Wage Demands - Labour • CPI for low income earners • Minimum living wage demands • Equal pay for work of equal value

  12. Wages – Business Benchmarks Historically - CPI + improvement CPI – 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

  13. Economic Prospects • Economic Growth: Low level 2011 – 2014 (2.5% - 3.8%) • Rate of Unemployment: 23.5% - 25% • Moderate employment Growth expected over next 3 years • Job creation prospects depend largely on private sector • Consumer inflation projected to remain within 3-6% target band (next three years) • Consumer consumption will stay under pressure • Pressure will stay on Rand Exchange rate to depreciate • Real decrease in house prices Rebalance Investments, Dr Chris Harmse

  14. Cycle and Duration of Agreements • The 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

  15. Pre-amble and Peace Clause The implications of the current pre-amble and peace clauses in the Main Agreement for the Motor Industry

  16. Threshold and Scope • Meaning of Scope • Purpose of Threshold • Demand to remove the threshold of earnings clause and the implications thereof

  17. Demands for the Banning of Labour Brokers (T.E.S) • Determination of who is the employer • Wage and related benefits • Organisational rights • Rights to fair labour practice • Social Security issues • Job Security

  18. Current Provisions of the Main Agreement on Temporary Employment Services (labour brokers) • Registration of T.E.S with MIBCO • Wages and Conditions of Employment Applicable • Joint and Several liability • Restricted use of T.E.S. with complete ban in Sector 5 establishments (Fuel dealers)

  19. 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.

  20. 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

  21. Demand for a 40 Hour Working Week – without loss of pay

  22. RMI – NEEDS BASED PROPOSALS • Viability and long term sustainability of businesses • The sustainability of MIBCO as a Bargaining Council • Flexibility for employers • Less administration • Increased Productivity • Enabling Environment for Business • Workplace discipline • Long term labour peace

  23. NUMSA DEMANDS • Increase scope to include Automotive value chain i.e. automotive assembly and tyre & rubber • One year duration – July to June cycle • R6000 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 month • Removal of area differentials (Area A wages only) • Cashier rate of pay to be at Grade 5 • Threshold of earnings to be removed

  24. 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 Clause • Four levels of bargaining • Remove Division C and replace with Division D • Safe maternity environment and 6 months paid maternity leave • 4 weeks remuneration for every year of service with no ceiling

  25. Transport pay and allowances for all workers • Transport allowance, night shift allowance, afternoon shift allowances, underground allowances and call out allowances and increases where they exist • 40 Hour working week • Labour brokers to be banned • 100% payment during lay-off or stress relief fund • Shop stewards and office bearers to be granted 30 days paid leave • Voluntary overtime for all workers • Normal Sunday rate to be double

  26. 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 Increases • Normal retirement age to be 60 years • Employment Equity and removal of discriminatory clauses (list provided) – (Not listed grounds as per EE)

  27. MISA DEMANDS • Three year agreement • 13.5% 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-Time • Uniforms

  28. Do we need a war for the attainment of longer term peace and sustainability?

  29. Business Imperatives • Business viability and sustainability • Employer flexibility • Peace Clauses • Cycle of Agreement • Duration of Agreement • Temporary Employment Services (Labour Brokers) • Productivity - Hours of Work • Extension of Agreements • No Mega-Bargaining Council

  30. IMPORTANT: Employers must Act in cohesion…

  31. MIBCO NEGOTIATIONS PROGRAMME • 1ST Round of Negotiations : 29 & 30 May 2013 • 2nd Round of Negotiations: 11 – 13 June 2013 • 3rd Round of Negotiations: 27 & 28 June 2013 Further Processes in the event of non-resolution: • Dispute Declaration • One Dispute Meeting within two weeks • Compulsory Mediation • Strike Notice – 48 Hour Notice

  32. “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

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