UNDERSTANDING THE APPLICATION OF WAGES IN THE MOTOR INDUSTRY
DIVISIONS OF THE MOTOR INDUSTRY
DIVISION 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 – CHAPTERS 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.
2
TRESHOLD
Only the following clauses in the Main Agreement shall apply to
employees whose weekly or monthly remuneration, excluding
commission on sales, is less than the rate of R172 000 per annum
(R135 000 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 EMPLOYEESPlease see job categories on page 4 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
repair sector of the industry (Sector 4) and can be obtained by
looking at the guaranteed wage increase schedule for Sector 4. 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.
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
R172 000 per year (R135 000 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 5, 6 and 7 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
above, 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 R4 496.40,
whichever amount is lesser. Journeymen and apprentices receive
3
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 MONETARYINCREASESGuaranteed 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 R135 000 per annum or less. The new
threshold conditions of employment for Chapter III is
R172 000 per annum.
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 categories 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
4
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.
DIVISION B & D - CLAUSE 3 (WAGES) - ALL CHAPTERS & SECTORS
WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2014
Class of employee
Class of employee
a) Office, stores sales and
Clerical employee-
during 1st year of experience
during 2st year of experience
during 3st year of experience
thereafter
(b) Motor vehicle sales person-
During 1st year of experience
thereafter
(c) Bookkeeper
(d) Accountant
(e) Parts salesperson -
During 1st year of experience
thereafter
(f) Traveller -
during 1st year of experience
thereafter
(g) Supply sales person -
during 1st year of experience
during 2st year of experience
during 3st year of experience
thereafter
(h) Part-time employees
All Areas All Areas All Areas
SECTORS 1,2,3,4,5 & 7 SECTOR 6 ONLY SECTORS 1(ch 2),2,3,4,5,& 7
Minimum Wages Minimum Wages GUARANTEED INCREASES
Area A Other Areas Area A Other Areas
PW PM PW PM PW PM PW PM PW PM
PW PM PW PM
* One eleventh of the minimum weekly wage as prescribed for clerical employees in (a) hereof, for ordinary time worked on each day on 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.
R R R R R R R R R R
941,24
1073,97
1236,88
1436,00
1135,66
1464,21
1846,25
3140,78
1183,72
1454,09
4078,71
4653,87
5359,81
6222,67
4921,19
6344,91
8000,42
13610,05
5129,45
6301,06
941,24
1073,97
1235,13
1425,33
1132,20
1446,11
1833,25
3100,53
1183,72
1441,62
4078,71
4653,87
5352,23
6176,43
4906,20
6266,48
7944,08
13435,63
5129,45
6247,02
960,64
1094,39
1261,34
1462,09
1135,66
1464,42
1862,24
3182,31
1188,60
1454,09
4162,77
4742,36
5465,81
6335,72
4921,19
6345,82
8069,71
13790,01
5150,60
6301,06
956,96
1085,28
1248,28
1429,11
1132,20
1446,16
1842,01
3122,36
1188,37
1435,56
4146,83
4702,88
5409,21
6192,81
4906,20
6266,69
7982,04
13530,23
5149,60
6220,76
69,72
79,55
91,62
106,37
84,12
108,46
136,76
232,65
87,68
107,71
302,12
344,72
397,02
460,94
364,52
469,99
592,63
1008,15
379,95
466,74
1188,60
1454,09
1188,60
1361,49
1526,17
1637,86
*
5150,60
6301,06
5150,60
5901,09
6613,40
7097,39
*
1188,60
1454,09
1188,60
1361,79
1526,17
1637,86
*
5150,60
6301,06
5150,60
5899,79
6613,40
7097,39
*
88,04
107,71
88,04
100,85
113,05
121,32
5
381,51
466,74
381,51
437,02
489,88
525,72
PM PW
DIVISION C, CHAPTER 1 - CLAUSE 3 - WAGES
WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2014
CHAPTER 1 CHAPTER 1 CHAPTER 1
SECTOR 4,5 & 7 ONLY SECTOR 6 ONLY Guaranteed Increases*Class of employee
Grade 1
Forecourt Attendant
Parking Garage Attendant
Cashier
Char (Sector 5)*
Char
Grade 2
Grade 3
Grade 4
Grade 5
Grade 6
Class of employee
Grade 7
Grade 8
Watchman
APPRENTICES
3 YEAR TRADE
First year
Second year
Third year
4 YEAR TRADE
First year
Second year
Third year
Fourth year
Area A Other Areas Area A Other Areas All Areas
PW PH PW PH PW PH PW PH PW PH
R R R R R R R R R R
*Minimum wage increases as prescribed for Chars in Sector 5 only.
Sector 5 Wage Increases will be subject to the fuel profit margin adjustment to be
declared by the Department of Energy and Minerals, which when pronounced, will be
advised accordingly to Industry.
All Areas All Areas All Areas
PW PH PW PH PW PH
All Areas All Areas
ALL CHAPTER ALL CHAPTERLEARNERS
º Not Applicable to Sector
6 Establishments
NQF LEARNERSHIPS CBMT
PW PH PW PH PW PH
9 39,15
5 68,80
1 030,50
7 67,70
7 42,50
9 97,20
1 079,10
1 178,55
1 314,00
1 579,05
2 0,87
1 2,64
2 2,90
1 7,06
1 6,50
2 2,16
2 3,98
2 6,19
2 9,20
3 5,09
9 39,15
5 62,05
9 86,40
7 64,55
7 39,35
9 59,40
1 079,10
1 178,55
1 314,00
1 579,05
2 0,87
1 2,49
2 1,92
1 6,99
1 6,43
2 1,32
2 3,98
2 6,19
2 9,20
3 5,09
7 77,60
1 042,65
1 119,15
1 221,75
1 354,95
1 614,15
1 7,28
2 3,17
2 4,87
2 7,15
3 0,11
3 5,87
7 60,95
9 85,50
1 119,15
1 221,75
1 354,95
1 609,20
.
16,91
21,90
24,87
27,15
30,11
35,76
7 7,40
4 2,30
8 5,05
6 3,45
5 4,90
7 3,80
8 0,10
8 7,30
9 7,20
1 17,00
1,72
0,94
1,89
1,41
1,22
1,64
1,78
1,94
2,16
2,60
1 966,50
2 248,20
9 08,37
4 3,70
4 9,96
no hourly rate
1 989,90
2 273,40
9 40,87
44,22
50,52
no hourly rate
1 45,80
1 66,50
67,29
3,24
3,70
no hourly rate
1130,40
1401,75
1723,05
25,12
31,15
38,29
Level 1
Level 2
Level 3
Level 4
1130,40
1240,20
1401,75
1723,05
25,12
27,56
31,15
38,29
1130,40
1240,20
1401,75
1723,05
25,12
27,56
31,15
38,29
1077,75
1345,95
1617,75
1883,25
23,95
29,91
35,95
41,85
6
DIVISION C, CHAPTER II - V : CLAUSE 3 - WAGES
WAGE SCHEDULE : MINIMUM WAGES - 1 SEPTEMBER 2014
Class of employee
Class of employee
MEASURING INSTRUMENT BONUS
CHAPTER 2* CHAPTER 3* CHAPTER 4 CHAPTER 5* APPRENTICES/LEARNERS
SECTOR 1 SECTOR 1 SECTOR 3 SECTOR 2 ALL CHAPTERS
All Areas All Areas Area A Other Areas All Areas All Areas
PW PH PW PH PW PH PW PH PW PH PW PH
R R R R R R R R R R 3 Year Trade
Grade 1
Grade 2
Grade 3
Grade 4
Grade 5
Grade 6
Grade 7
Grade 8
Watchman
Tape/rule/square/sets
Vernier/micrometer
PW
All Areas All Areas All Areas All Areas
4 Year Trade
NQF Learnership
CBMT
PW PH PW PH PW PW PH PW PH
GUARANTEEDINCREASE
Provisions for Chapter 4 Operatives
PW PH PW PH MINIMUM
First year
Second year
Third year
First year
Second year
Third year
Fourth year
Level 1
Level 2
Level 3
Level 4
Level 1
Level 2
Level 3
Level 4
1. Op. Engine Assembler
1st 18 Months Experience
Thereafter
Thereafter
Thereafter
2. Operative Grade A
1st 12 Months Experience
3. Operative Grade B
1st 6 Months Experience
742,50
997,20
1079,10
_
1314.00
1579,05
16,50
22,16
23,98
_
29,20
35,09
771,75
1016,10
1099,35
1200,60
1339,20
1606,50
17,15
22,58
24,43
26,68
29,76
35,70
742,50
997,20
1079,10
1178,55
1314.00
1579,05
16,50
22,16
23,98
26,19
29,20
35,09
739,35
959,40
1079,10
1178,55
1314.00
1579,05
16,43
21,32
23,98
26,19
29,20
35,09
742,50
997,20
1079,10
1178,55
1314.00
1579,05
16,50
22,16
23,98
26,19
29,20
35,09
1130,40
1401,75
1723,05
25,12
31,14
38,29
1130,40
1240,20
1401,75
1723,05
25,12
27,56
31,14
38,29
1130,40
1240,20
1401,75
1723,05
25,12
27,56
31,14
38,29
1077,75
1345,95
1617,75
1883,25
23,95
29,91
35,95
41,85
1966,50
2248,20
908,37
43,70
49,96
no hourly
rate
_
2289,60
908,37
_
50,88
no hourly
rate
1966,50
2248,20
908,37
43,70
49,96
no hourly
rate
1966,50
2248,20
908,37
43,70
49,96
no hourly
rate
1314.00
1966,50
1314.00
1579,05
1079,10
1178,55
29,20
43,70
29,20
35,09
23,98
26,19
97,20
145,80
97,20
117.00
80,10
87,30
2,16
3,24
2,16
2,60
1,78
1,94
7
CHAPTER 3
13,80
9,20
For further informationplease contact your localRMI regional office
JohannesburgTel: (011) 886 6300
Regional Manager: Jeff Molefe
IR specialist: Moragi Sono
DurbanTel: (031) 266 7031
Regional Manager: Annette Stewart
IR specialist: Julian Pillay
Cape TownTel: (021) 939 9440
Regional Manager: Joy Oldale
IR specialist: Brent Barichievy
IR specialist: Johanita Olivier
PretoriaTel: (012) 348 9311
Regional Manager: Pieter Niemand
IR specialist: Marti van Renssen
BloemfonteinTel: (051) 430 3294
Regional Manager: Louis van Huyssteen
IR specialist: Henry Galloway
Port ElizabethTel: (041) 364 0070
Regional Manager: Erwin Stroebel
IR specialist: Eckhardt Oelofse