Wage negotiation resolution

Jan Schoeman, chief negotiator for the Retail Motor Industry Organisation (RMI) , confirmed that an agreement has been reached in the Motor Industry Bargaining Council for wages and other conditions of employment for the ensuing three years. 

Schoeman says the agreement entails increases of 6%, 5,5% and 5,5% on minimum wages for the reconditioning, sales and repair sectors of the industry, for each of the next three years. The agreement also provides for increases of 7,5%, 7% and 7% for the component manufacturing sector and 8%, 7% and 7% for the fuel retail sector of the industry for the three year period.

The agreement will become effective once the Minister of Employment and Labour publishes and extends the terms of the agreement to all employers and employees in the Industry, in the Government Gazette. This is a process that will  take some time to complete. “No provision is made for compulsory back-pay of increases, though,” says Schoeman. 

Schedules containing new wage rates are in the process of being finalised and will be circulated to Industry in due course.

Schoeman reiterated the importance of concluding negotiations, as it provides for labour stability until the next round of negotiations, which are scheduled for 2022.