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


Motor Industry Bargaining Council  (MIBCO)

Main Collective Agreement

Division C

Chapter III : Manufacturing Establishments

Clause 2 : Wages



(1)        Preamble:

(a) Negotiations are based on increases to actual and minimum wages as set out in this clause.
(b) Employees in Chapter III establishments inclusive of Division B employees employed at Chapter III establishments who earn less than R115 500 per annum will be eligible for annual increases as stipulated in subclause (2) hereunder. The threshold of R115 500 to remain for the duration of the Agreement ending 31 August 2013.


(2)        Actual Wages


The following increases shall be paid on actual wages:

(a) 9% from 7 February 2011 to 31 August 2011.
(b) 8% in respect of the period 1 September 2011 to 31 August 2012.
(c) 8% in respect of the period 1 September 2012 to 31 August 2013.


NOTE: If the CPI in respect of the month of June of the applicable year exceeds the percentage increase the higher percentage shall apply.


(3)        Set-off


An employer that has already granted a wage increase after 1 September 2010 may offset those increases against the percentage set out in this clause.


(4)        Prohibition on Industrial Action


The Parties undertake not to embark on any industrial action as a result of disputes on minimum wages and percentage increases relating to any other chapters of this Agreement provided the employer has implemented this Agreement and in which case any such industrial action is deemed to be unprotected.


(5)        Exemptions


An employer may apply for an exemption in respect of the increases to actual wages as set out in this clause in accordance with clause 5 of the Administrative Agreement.


(6)        Minimum Wage


Subject to the provisions of sub-clause (7) of this clause dealing with bonuses, the minimum wage that an employer must pay to each of his employees of the undermentioned classes must be as set out in the Schedules hereunder and no employee shall accept a wage lower than that specified for his class.


(7)        Bonus


Employers shall permit employees for whom wages are prescribed for operatives Grade 3, 4, 5 & 6 in the Schedule to use measuring instruments and/or gauges and the minimum weekly prescribed wage must be increased if the employee at any time in the course of his or her duties uses:

(a) vernier gauge and/or micrometer in which event the prescribed wage must be increased by R13,80 per week; or
(b) a tape and/or rule and/or square and/or sets and adjusts the machine he operates in which event the prescribed wage must be increased by R9,20 per week.


(8)        Wage Schedules

(a) Minimum wages from 7 February 2011 until 31 August 2011

(b) Minimum wages from 1 September 2011 until 31 August 2012

(c) Minimum wages from 1 September 2012 until 31 August 2013