PowerPoint Presentation

Understanding the Application of Wages in the Motor Industry

September 2012 31 August 2013

Division A of the Main Agreement covers generic Conditions of Employment which are applicable to the motor industry other than those conditions which are specifically applicable to office, stores, sales and clerical employees.

Division A also contains definitions and the grades of the various employees.Divisions of the Motor Industry

Division B covers all wages and conditions of employment which are applicable to office, stores, sales and clerical employees.Divisions of Motor IndustryDivision C contains minimum wages for all employees excluding Office, Stores, sales and clerical employees.

Divisions of the Motor IndustryDivision C is divided into five chapters:Chapter 1 - The entire motor industry, other than those specifically covered in Chapters 2, 3, 4 and 5Chapter 2 Vehicle Body BuildersChapter 3 Component ManufacturersChapter 4 Automotive Engineering EstablishmentsChapter 5 Reconditioning Establishments

Divion C - Chapters

Sector 1 Manufacturing (Chapter III)Vehicle Body Building (Chapter II)Sector 2 RemanufacturingSector 3 Engine Reconditioning EstablishmentsSector 4 Workshops, Motorcycle dealers, Body repairers, tyre dealers etc.Sector 5 Fuel DealersSector 6 DealershipsSector 7 Parts and Equipment Dealers

Division D - Sectors

Grades of Employees are included in our circular.

Please click link hereunder to access the information relating to the different Grades.http://www.rmi.org.za/wp-content/uploads/2012/08/WageSchedule-1September2012-31August20134final.pdf(Right click on link, select open hyperlink)Grades of Employees excluding Division B EmployeesMinimum wages means that an employer may not pay a wage less than that which is prescribed for the particular grade or category of employee, unless the employer has obtained an exemption from MIBCO.

Please note that Dealerships (Sector 6) employees have higher minimum wages than the rest of the industry.Minimum Wages

Guaranteed monetary increases - the minimum monetary value of increases to be granted to employees who are earning above the minimum prescribed increases at the time when the agreement becomes effective.

Guaranteed monetary increases are not applicable in dealerships (Sector 6) and Component Manufacturers (Chapter III).

Guaranteed Monetary IncreasesComponent Manufacturing Establishments (Chapter III) grant actual percentage increases to employees below the threshold of R115 500 per annum.Actual Increases

The effective date of implementation is1 September 2012, other than Forecourt Attendants and Cashiers at fuel retailers.

The effective date of implementation for Forecourt Attendant wages and Cashiers employed at Service Stations is 5 September 2012.Effective DateFor further information, please contact your nearest Regional Office

Johannesburg:Tel (011) 886-6300Francois BeyaSimba MadziwaGeneral Manager :Sibongile MtaopaneCape Town:Tel (021) 939-9440Brent BarichievyJohanita OlivierRegional Manager :Jan SchoemanBloemfontein:Tel (051) 430-3294Vernon MayRegional Manager :Louis van HuyssteenDurban:Tel (031) 266-7031David van RooyenJulian PillayGeneral Manager :Annette StewartPretoria:Tel (012) 348-9311Geraldene PillayRegional Manager :Pieter NiemandPort Elizabeth:Tel (041) 364-0070Eckhardt OelofseRegional Manager :Erwin Stroebel

Prepared by:

Aruna Ranchod- Director : Industrial RelationsClaire Patterson Director : Communications

September 2012