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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

6. Wages

6.10 Incentive Bonus Scheme and/or Conveyor Belt System


(1) An incentive bonus scheme and/or conveyor belt system may be introduced in any establishment by mutual agreement between the management, representatives of the trade union and the employees concerned and may be altered only by mutual agreement between these parties. Such schemes may be terminated by either the employer or the trade union giving not less than one week's notice.


(2) Any dispute concerning the introduction or working of any scheme which cannot be settled in the factory be negotiation between the employer, the employees and the trade union official shall be referred to the Council.


(3) An incentive bonus scheme may be introduced in respect of some of the employees employed in a particular section of an establishment: Provided that it shall be applied within a reasonable period after its commencement to all employees engaged in the production of the particular garment in respect of which the scheme has been introduced.


(4) Subject to the provisions of subclauses 6.8 (1) and 7.4 (3), such incentive bonus scheme and/or conveyor belt system shall enable an employee to earn at least 10 per cent in excess of the specified wage.


(5) A copy of the incentive bonus rates and subsequent alterations thereto, agreed upon and duly signed by the employer and the Secretary of the trade union, shall be filed with the Secretary of the Council and the employer shall keep a copy thereof posted in a conspicuous place readily accessible to his employees.


(6) When an employee is remunerated on an incentive bonus and/or conveyor belt basis, his ordinary rate of wage shall, for the purpose of overtime in terms of clause 8, be calculated as though he were paid by the hour and shall be ascertained at any date by dividing his total earnings, excluding overtime, during the three months immediately preceding that date or during the total period of his employment on an incentive bonus basis by the employer concerned, whichever is the shorter, by the number of hours worked, excluding overtime, during the period in respect of which such earnings were paid.