ANNEXURE J

Phase-in Exemption

The parties have taken note that there are many employers who for one or other reason have been operating outside of the terms and conditions of the main agreement, particularly when it comes to rate of pay.

The parties also agree that encouraging these employers to come on board in one step may not be feasible or practical and may not assist in achieving the end goal of reaching parity of wages across the sector.  The parties agree therefore that in order to reach parity, phase-in will need to be approached in a stepped-phased approach and must form part of  broader project aimed at achieving parity with the main agreement in a managed and phased manner over agreed time-spans.

Phase-one of the project will focus on moving employers, who elect to be covered by the main agreement and who have been operating outside of the main agreement, to achieve 60% of the 2020 wage rates.

The above illustrates the 2019/2020 main agreement general wage table and the 60% of the current wage rates across the grades (the same principle applies across all the main agreement wage tables (i.e. Electric Cable; Structural Engineering; Five Grade; Vehicle Drivers; Gate and Fence Manufacturing, but will exclude Apprentices and Annexure H)).

The parties have agreed that the 60% of the current minimum wage rates, as set out above will be fixed for the duration of this agreement and constitutes phase-one of the project.

Phase-one of the project will end on 30 June 2024. The parties agree that during the currency of this agreement, the parties will agree on the modalities, goals, time-frames and objectives informing phase-two of the project.

To qualify for this scheme, employers must be a member of an employer organisation that is a signatory to this agreement and employers must apply for and receive an individual licence of exemption setting out their phase-in plan to achieve 60% of the 2020 wage rates.

The licence of exemption will stipulate that notwithstanding what an employer is paying below the 60% of the current main agreement rates leave pay and leave enhancement pay must be calculated on the 60% rate as set out above.

Wage increases for employers paying less than 60% of the current wage table must implement, as a rand/cents amount on what a worker is actually receiving (i.e. whatever the percentage agreed between the parties, will be awarded as a rand/cents increase on what an employee is actually earning for his/her grade of work).

Employers paying above 60% of the above wage table and who elect to come onto this scheme must calculate leave pay and leave enhancement pay on a workers actual rate of pay.

Wage increases for employers paying above 60% of the current (2020) main agreement rates but less than a 100% of the current wage table must implement as a rand/cents amount on what a worker is actually receiving (i.e. whatever the percentage increase agreed between the parties, will be awarded as a rand/cents increase on what an employee is actually earning for his/her grade of work).

Employers paying above 60% of the above wage table but below a 100% of the (2020) Main Agreement rates and who elect to come onto this scheme must calculate leave pay and leave enhancement pay on a workers actual rate of pay.

Applications for phase-in exemption must be accompanies by completing the standard application of exemption questionnaire and will be dealt with after giving consideration to the following:

The special phase-in exemption will be valid for a period of one year and any extension will be reviewed on an annual basis.

No company which agrees to adopt the phase-in programme on a voluntary basis may retrench any worker as a direct result of the phasing-in period of the new wage structure, unless such retrenchment is on a voluntary basis or unless external circumstances beyond either party's control impact upon the enterprise.