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


National Bargaining Council for the Clothing Manufacturing Industry

Main Collective Agreement

Part A : Provisions for the Eastern Cape Region

12. Employee Benefits

12.1 Supplementary Benefits Fund



(1) The Fund established in terms of the Agreement published under Government Notice No. 1724, dated 21 September 1956, known as the Clothing Industry Welfare Fund (in this clause referred to as the "Fund"), is hereby continued.


(2) The objects of the Fund shall be the provision of financial assistance to employees who—
(a) lose earnings as a result of being on short-time in terms of subclause 7.4;
(b) lose earnings through being certified unfit for work on account of tuberculosis;
(c) require spectacles;
(d) are entitled to a grant when proceeding on maternity leave in terms of subclause 8.3;
(e) lose earnings as a result of proceeding on compassionate leave/paternity leave in terms of subclause 8.4.



(a) The employer shall deduct an amount of 60 cents per week from the wages of each employee.
(b) An employer shall, in respect of each contributor from whose wages deductions are made in terms of subclause (a) above, contribute an amount of 84 cents per week.
(c) The total amount deducted, together with his contribution in terms of subclause (b) above, shall be forwarded by the employer to the Regional Secretary of the Regional Chamber of the Council, not later than the seventh day of the month following that to which it refers, together with a statement in such form as the Council may from time to time specify.


(4) An employee who has been employed in the Industry for not less than 13 weeks and who has been absent from work on account of short-time, shall be entitled to 50% of his actual daily wage: Provided that no benefits shall be paid to an employee who earns the equivalent of four days' wages in any week, irrespective of the number of days such an employee may work during that week: Provided further that the amount paid to an employee shall not be in excess of 10 days in any period of 12 consecutive calendar months.


(5) An employee who has been a member of the Fund for 13 weeks, shall be entitled to financial assistance by way of tuberculosis pay at the rate of 50% of his actual wage for a consecutive period of not more than eight weeks commencing on the day the employee, certified to be suffering from tuberculosis by a medical practitioner, ceased work on the instructions of such medical practitioner, or for such lesser period as the medical practitioner may deem it necessary for the employee to remain absent from his place of work due to his contraction of tuberculosis: Provided that—
(i) an employee who during any week is absent for a period of less than a full calendar week shall be paid one fifth of the weekly benefit in respect of each day of such absence,


(6) An employee who has been a member of the Fund for 13 weeks and who satisfies the Council that because of defective eyesight, he has had to obtain spectacles, shall be paid an amount of R20 towards the cost thereof: Provided that not more than one such payment shall be made during each cycle of 24 months.


(7) An employee proceeding on maternity leave in terms of subclause 8.3 shall be entitled to a grant of R500: Provided that—
(i) only one such grant shall be payable to such employee every three years;
(ii) the maximum number of grants payable to such employee shall be three.


(8) An employee who has been a member of the Fund for 13 weeks and who proceeds on compassionate/ paternity leave in terms of subclause 8.4 shall be entitled to claim leave pay.


(9) All moneys paid into the Fund shall be deposited in a special account to be opened in the name of the Fund at a bank and/or institution approved by the Council. All payments from the Fund shall be by cheque on the Fund's accounts and such cheques shall be signed by two persons duly authorised thereto by the Council.


(10) Any moneys regarded by the Council as being surplus to its requirements may be placed on deposit with a bank or registered building society: Provided that sufficient money is kept in such liquid form as will enable the Council to meet its liabilities immediately it is called upon to do so.


(11) A public accountant shall be appointed by the Council to audit the accounts of the Fund annually and not later than 31 March in each year, and to prepare a statement showing—
(a) all moneys received—
(i) in terms of subclause 12.1 (3) thereof;
(ii) from any other source; and
(b) expenditure incurred under all headings during the 12 months ended 31 December preceding, together with a statement showing the assets and liabilities of the Fund.


The audited statements, shall thereafter lie for inspection at the office of the Council and copies thereof shall be sent to the Registrar of Labour Relations, Pretoria, within three months after the closure of the period covered thereby.


(12) In the event of the expiry of this part of the Agreement through effluxion of time or cessation or through any other cause, the Fund shall continue to be administered by the Council until the Fund is liquidated or transferred to a fund duly constituted for the same purpose for which the original Fund was created: Provided that the Fund shall be liquidated unless an agreement providing for the continuation of the Fund or for the transfer of its moneys as aforesaid, is entered into within one year of the date of expiry of this part of the Agreement.


(13) In the event of the dissolution of the Council or in the event of its ceasing to function during any period in which this part of the Agreement is binding in terms of section 61 (5) of the Act, the Fund shall continue to be administered by a committee consisting of the members of the Council at the date on which the Council ceases to function or is dissolved: Provided, however, that any vacancy occurring on the Committee may be filled by the Registrar of Labour Relations from employers or employees in the Industry, as the case may be, so as to ensure an equality of employer and employee representatives and of alternates in the membership of the Committee. In the event of such Committee being unable or unwilling to discharge its duties or a deadlock arising thereon which renders the administration of the Fund impracticable or undesirable in the opinion of the Registrar of Labour Relations, he may appoint a trustee or trustees to carry out the duties of the Committee and who shall possess all the powers of the Committee for such purposes.


If there is no Council in existence upon the expiry of this part of the Agreement, the Fund shall be liquidated by the Committee or the trustees, as the case may be, in the manner set forth in subclause 12.1 (12) and if upon such expiry the affairs of the Council have already been wound up, and its assets distributed, the balance of this Fund shall be distributed as provided for in section 59 (5) of the Act, as if it formed part of the general funds of the Council.


(14) Upon liquidation of the Fund in terms of subclause 12.1 (12), the moneys remaining to the credit of the Fund after the payment of all claims against the Fund, including administration and liquidation expenses, shall be paid into the funds of the Council.


(15) All costs of administration and liquidation of the Fund shall be charge upon the Fund.