We are aware of the serious financial and economic pressures that many Members have exerted following the long period of closure of operations linked to the COVID 19 pandemic and the associated Disaster.As, we would like to assure our members that the amended MIBCO main agreement, once it is published, will contain provisions allowing companies in financial difficulty to apply for a waiver from the implementation of these increases. An exemption is in fact a certificate that, if approved on the basis of certain financial criteria, is issued to an employer that authorizes that employer not to apply certain provisions of the agreement, such as wage increases and other unpaid cash items. Schoeman added that Mibco was convening a meeting of city councillors to make a decision on the agreement. He also said that the agreement had not been signed in January 2019, but in January 2020, after RMI had requested Numsa`s signature. The union said the 8% wage agreement signed last January had not been ratified because the RMI had deliberately tried to thwart the work of the Automotive Industry Council (Mibco). Numsa requested that the Council meet to reconstitute itself, ratify the collective agreement signed by the RMI – whether accepted or rejected – and that RMI cease to interfere in the process of appointing the Secretary General of the Council. Numsa`s regional secretary, Vuyo Lufele, said RMI was refusing to attend a Mibco meeting that would take the decision to adopt the agreement and send it to committee, which would ultimately lead to extending the agreement to non-parties. The National Union of Metalworkers of South Africa (NUMSA) has signed the three-year transaction agreement with the Motor Industries Bargaining Council (MIBCO). Jan Schoeman, the CEO of the RMI, said that the RMI alone could not ratify the collective agreement and that it demanded a resolution from Mibco. It should be noted that we have not received any indication from the Ministry of Labour and Labour (DoEL) as to when the publication will take place, but we can note that it is very unlikely to be until September 1, 2020, when the next round of increases will begin. He stated that this had resulted in Mibco not being able to conclude the formalities related to the ratification of the collective agreement. Members who are financially able to do so may choose to make wage increases on September 1, 2020 or prior to the publication of the agreement, on an exclusively voluntary and non-prejudiced basis. If a member implements the increases in this way, he is not obliged to do so again as soon as the agreement is published, since the agreement contains an undefined provision authorizing compensation for the increases granted in the previous twelve months in relation to what is legally due and payable at the time of publication.
“RMI is in compliance with the agreement reached in January 2020 and will ask its members to implement it immediately as soon as it is ratified by Mibco and published by the Ministry of Labour in the Government Scoreboard,” Schoeman said. The deadline for exemption applications is 30 days from the date the new agreement comes into force. As a result, members cannot, at this stage, apply for exemption from the implementation of these increases until the amended MIBCO main agreement is published in the government scoreboard. We will inform our members as soon as the agreement is published by Zirkel. Hlubi-Majola said RMI, which represents about 40 percent of the auto industry, failed to comply with the 8% wage agreement reached in January 2019.