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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Motor Industry Bargaining Council (MIBCO)

Administrative Collective Agreement

Extension to Non-Parties of the Administrative Collective Agreement

Clause 5 - Wage Exemptions Board

 

(1) The Council hereby establishes the Wage Exemptions Board ("the Board"). The Board shall have sole jurisdiction to consider applications for exemption by individual employers to pay a lesser wage increase and/or guaranteed increase.

 

(2) The Board shall consist of 6 members who shall include the General Secretary of the Council who shall also act as chairperson of meetings of the Board.

 

(3) The members of the Board shall include:
(a) Two independent labour representatives;
(b) Two independent business representatives; and
(c) An Auditor.

The members of the Board shall be required to inter alia possess the following qualities:

(i) the ability to be objective, independent and impartial;
(ii) sound decision-making skills;
(iii) leadership qualities, particularly in respect of exercising sound judgment;
(iv) be a person in whose impartially and integrity the public can have confidence;
(v) understand and comply with confidentiality requirements;
(vi) working knowledge and experience of labour and collective bargaining matters; and
(vii) knowledge and understanding of judicial / quasi-judicial processes.

 

(4) The General Secretary shall convene board meetings as and when required by giving at least 14 (fourteen) days written notice to members of the Board. Such notice shall include the Agenda and such other information as may be necessary to prepare for such meeting.

 

(5) The following procedure shall apply to wage exemptions:
(a) An employer that applies for an exemption in order to pay a lesser wage increase or to be exempted from paying on actuals shall complete the wage exemption application form available on request from the Council for consideration by the Board.
(b) The employer shall consult its employees on the employer's intention to apply for an exemption and the application for exemption must contain details and proof of the consultation process. The proof of the consultation process shall include written confirmation by the employer that the substantive reasons motivating for the application for exemption have been disclosed to its employees.
(c) The employer, in the application shall furnish all relevant financial Information supporting the motivation for the exemption applied for.
(d) The Board shall make a decision on the application for an exemption within 30 days from the date upon which it was lodged with the Council.
(e) If an application for exemption Is granted to an employer and written proof of such exemption is issued to the employer, the employer shall ensure that such written proof of exemption is contained and displayed at all establishments to which the exemption is applicable.

 

(6) In the case of an application for exemption relating to actual and I or guaranteed increases the following procedure shall apply:
(a) Individual employers seeking exemption to pay a lesser actual wage increase and/or a guaranteed increase or to be exempted from paying such must obtain the wage exemption application form available on request from the Council for consideration by the Board.
(b) Applications for exemption not to pay the agreed prescribed minimum wage increases will not be accepted or considered in terms of these exemption procedures.
(c) The application must be lodged with the Council and must include the following supporting documents—
(i) Formal financial information;
(ii) A written motivation; and
(iii) Details and proof of the consultation process between the employer, employees and relevant MIBCO Trade Unions.
(d) Applications must be lodged with the Council and considered within 21 calendar days from the date the Council has circularised all employers with the amending Agreements and wage schedules, either hand delivered or by registered mail or by fax or E-mail, in the prescribed format.
(e) The Board must make a decision on the application within 14 calendar days of the conclusion of the first period, namely, 21 days as referred to in sub-clause (d) hereof.
(f) Applicant employers shall be advised of the outcome within seven days by email, fax where applicable or by registered mail.
(g) Establishments may appeal to the Independent Board within.14 calendar days from the date of receipt of the registered post or fax advising of the rejection of the application.
(h) All hearings will be attended by the Council's Auditors to assist with the interpretation of the financial information.

 

(7) The General Secretary of the Council shall—
(a) number consecutively all licences issued;
(b) retain a copy of each licence issued; and
(c) where exemption is granted to an employee, forward a copy of the licence to the employer concerned.

 

(8) The General Secretary of the Council shall issue to every person granted a licence, a letter of authority signed by him setting out, read with the changes required by the context, the information referred to in sub-clauses (6) and (7) above.

 

(9) The Council shall determine on an annual basis, for the avoidance of any doubt, at the beginning of each financial year the remuneration to be paid to the members of the Board other than the General Secretary for their services to the Council.