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

Notices

Bargaining Council for the Metal and Engineering Industries

Main Collective Agreement

Part 1 : Conditions of Employment

10. Incentive Bonus Work

 

Subject to the general conditions set out below, an employee may work for his employer under the following system of incentive bonus work:

 

(1) The conditions contained in this Agreement relating to overtime, night-shift work and work on Sundays and public holidays shall apply and wages shall be calculated at the hourly rate for that class of work scheduled in this Agreement.

 

(2) An employee engaged on incentive bonus work shall be allowed a rest period of 10 minutes as near as possible to the middle of the morning and afternoon work periods, such rest periods to be reckoned as working time and paid for at the hourly rate for that class of work scheduled in this Agreement.

 

(3) Incentive bonus work rates shall be fixed by mutual arrangement between the employer and the employee who is to perform the work, and the shop steward shall be consulted if desired by either of the parties: Provided that incentive bonus work rates in foundries shall be fixed by mutual arrangement by a pricing committee, which shall consist of the employer and/or his representative and three employees, one of whom shall be the shop steward and one an employee who is engaged or is to be engaged on the incentive bonus work.

 

(4) In the event of a dispute concerning the incentive bonus work rate and failing an arrangement being come to in settlement between the parties, the matter shall forthwith be referred to the Bargaining Council by one or both of the aggrieved parties.

 

(5) Pending an arrangement being come to on the incentive bonus work rate, or in the event of the incentive bonus  work rate being referred to the Council in terms of subclause (4), the employee shall proceed with the job in accordance with the incentive bonus work rate allowed by the management.

 

(6) Any adjustment resulting from the Council’s decision which is in favour of the employee shall be applicable to him as from the date on which the matter was referred to the Council.

 

(7) Time during which an employee is abnormally prevented from proceeding with his work, shall, if the employee is required to stand by, be paid for at the hourly rate for that class of work scheduled in this Agreement with Agreement conditions in respect of overtime and night shift when applicable.  Time during which an employee is standing by shall not be taken into account in calculating bonus earnings.

 

(8) No payment shall be made for delays which are normal in the establishment concerned and which have been considered when fixing the time allowance.

 

(9) No rate agreed upon between an employer and an employee shall be considered satisfactory if such rate does not enable an average employee engaged on the particular bonus rate work to earn not less than 10 per cent above the rate for that class of work scheduled in this Agreement.

 

(10) In all cases, the employee shall be guaranteed the hourly rate for his class of work, irrespective of earnings, for the hours worked.

 

(11) An employee working on incentive bonus work shall be paid on the normal pay day of each week.

 

(12) Incentive bonus work rates or basis times once established may not be altered except for the following reasons:
(a) A mistake in the calculation of either side; or
(b) a change in the material, means or methods of production or the quantities; or
(c) a mutual arrangement has been come to between the employer and the employee in the same way as a new bonus work rate is arranged.

 

(13) The Council may, for any reason it deems fit, prohibit any establishment from working incentive bonus work or from working under any system which the Council considers to be a system of incentive bonus work.

 

(14) With the coming into operation of this Agreement, incentive bonus rates shall be re-negotiated: Provided that the arrangement applicable shall not be less favourable than that provided for in subclause (9).

 

(15) Apprentices may not be employed on incentive bonus work unless the prior permission of the Council has been obtained and the apprentice has completed his first two years’ apprenticeship or has obtained the full N2 certificate.