The Motor Industry Bargaining Council (MIBCO) governs the Retail Motor Industry through collective agreements reached by the parties to the Bargaining Council. These collective agreements are binding once signed by the Minister of Labour and published in the Government Gazette. One such an agreement is the MIBCO Main Collective Agreement (hereinafter referred to as ‘the Agreement’). The Agreement regulates the terms and conditions of employment and minimum wages/salaries in the retail motor industry.
Nineteen (19) months ago, on 31 August 2019, the Agreement lapsed despite in-depth negotiations that took place from as early as March 2019, to ensure an easy transition into the new three-year period effective 1 September 2019. The result was that there was no regulated or guaranteed increase effective 1 September 2019.
Newly signed MIBCO Main Collective Agreement
The Agreement, signed by the Minister of Employment and Labour, Mr. TW Nxesi, on the 12th of March 2021 and published in the Government Gazette on 18 March 2021, is binding on employers and employees from the second Monday after publication, which is 29 March 2021.
This is a very contentious subject and need some clarification. The retail motor industry consist of sectors and in certain instances, the terms and conditions differ between the sectors. Most of our members are employed in sector 6, sector 4 and sector 7 establishments as defined below.
A. Sector 6: Establishment/Dealership actively engaged in dealers’ sales and distribution establishments (hereinafter referred to as ‘sector 6’) such as:
B. Sector 4: Establishments actively engaged in services and repairs such as:
C. Sector 7: Establishments actively engaged in automotive parts, accessories, equipment and tools such as:
The New Minimum Wage/Salary
You will find the newly negotiated minimum wages/salaries set out in the Agreement on the following pages:
The newly negotiated wages/salaries for clerical and workshop employees employed at a sector 6 establishment is under Division D, on page 168 to 169 of the Agreement.
(Important: – The minimum wage/salary as per the newly signed MIBCO Main Collective Agreement as far as it relates:
The newly negotiated wages/salaries for clerical employees employed at a sector 4 or 7 establishment is under Division B, on page 123 – 124 of the Agreement.
The newly negotiated wages/salaries for workshop employees employed at a sector 4 or 7 establishment is under Division C, on page 126 – 127 of the Agreement.
The Threshold and Wage/Salary Increases
Salary Increase is a complex issue. It is for this reason that we will unpack the position for employees earning above the minimum wage/salary in a sector 6 establishments, as well as those who earn above the threshold, in next week’s article.
Signatories to the Agreement
During the negotiations, MISA, in good faith, put forward certain items to the benefit of our members. The RMI did however not engage on any of those items and as a result, MISA did not sign the Agreement.
Notwithstanding the fact that MISA did not sign the Agreement, the Minister of Employment and Labour extend the Agreement to all employees, unionised and non-unionised, as well as all employers, affiliated or non-affiliated with the Employer Organisations.
The Agreement therefor applies to all employees and employers in the retail motor industry, subject to certain terms and conditions.
The MIBCO Main Collective Agreement has been signed and gazetted and will be enforceable with effect from 29 March 2021. Increases will be effected from 29 March 2021 and will not be retrospective.
Remember, MISA is just a phone call away.
Kindly utilise the following e-mail addresses and links for assistance during this time:
011 476 3620
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