AMENDED MAIN AGREEMENT : 2009

Q: What is the period of operation of the present Main Agreement?
A: The Main Agreement will be in force until at least 28 February 2011

Q: Sub-clause 7(4)(e) which deals with wages has been amended. What is the main reason for the amendment?
A: The amendment provides that the minimum prescribed wages of grades 4 and 5 employees must be increased by 3% on 31/12/2010 and with a further 3% on 28/02/2011. This has the effect that the new minimum prescribed wages of grade 4 employees will be R1106-48 per week as from 31/12/2010 and that of grade 5 employees R1270-73 per week. The minimum prescribed wages of grade 4 employees will be R1139-65 per week as from 28/02/2011 and that of grade 5 employees will be R1308-85 per week also as from 28/02/2011.

Q: Sub-clause 57(3)(a) of the Wellness Fund has been amended. What does the amendment entails?
A: Before the amendment was published employers had to deduct 0,5% from an employee’s normal basic wage as a contribution to the Wellness Fund. In addition to that a further amount of 0,5% of an employee’s normal basic wage had to be deducted and added to an employee’s provident fund contribution. The amendment has done away with the additional 0,5% to be deducted and added to an employee’s provident fund contributions. This means that with effect from 14 June 2010 an employee will contribute 0,5% of his/her weekly normal basic wage to the Wellness Fund and that an employer’s contribution will remain at 1%. Effective from 14 June 2010 Provident Fund contributions will be 10% by the employer and 10% by the employee based on the employee’s normal basic wage.

Q: Clause 21 dealing with holiday pay bonuses has been amended. Please explain.
A: The amendment to sub-clause 21(12) provides that for the duration of the Main Collective Agreement the Exemptions Body shall grant an employee exemption to pay holiday pay bonuses and leave pay direct to its employees. In order to be exempted an employer will have to apply for exemption on the prescribed exemption form and must comply with the following criteria:

1. The employer must provide, on an annual basis, a guarantee from a banking institution that the employer has the funding available to cover the accrued holiday pay bonuses and leave pay liability, failing which the bank will make good the liability; or
2. The employer must provide a certificate from its auditors that it has made adequate provision in its accounts to cover the accrued holiday pay bonuses and leave pay liability; AND
3. The employer has conducted business for at least 3 years; AND
   (a) The employer has an acceptable record of payment compliance to the Council; AND
   (b) The Exemptions Body is satisfied that the employer is financially stable; AND
   (c) The Exemptions Body is satisfied that the employer has consulted appropriately with its employees on the direct payment.

Q: Clause 49 which deals with the bargaining unit has also been amended. What impact will this amendment have on the Industry as a whole?
A: Clause 49 deals with the bargaining unit of the Council.  Bargaining unit simply means the categories of employees in respect of whom minimum wages are prescribed in the Main Collective Agreement. The bargaining unit presently only includes drivers, assistants and other categories of employees mainly associated with the loading ect of vehicles . The aim of the amendment is to enable Council to built up a data basis of other employees in the Industry for example the number of office clerks, secretaries, supervisors ect that are not presently included in the bargaining unit. In order to start the process employers will have to include all other categories of employees engaged in the Transport Industry on their August 2009 monthly returns which are payable on or before the 20th of September 2009. It is imperative that employers should take note that NO contributions should be made in respect of the new categories of employees as they DO NOT form part of the bargaining unit. The information will be collected over a period of time in order to built a reliable data basis.

Q: There are two new definitions in the Main Agreement. Please explain.
A: The first definition defines HAZCHEM drivers. Such a driver must be a qualified dangerous goods driver and holds a dangerous goods permit and must be specifically employed to transport dangerous goods. These drivers, including their assistants will receive a danger allowance as from 1 March 2010. The allowance will be 0,5% based on the minimum prescribed wages for that category of employee and will be calculated either on a weekly basis in respect of weekly paid employees or on a monthly basis in respect of monthly paid employees The drivers assistants will also qualify for the danger allowance.

The second definition defines dangerous goods drivers. These drivers must have qualified as dangerous goods drivers and must have the appropriate PDP hazardous goods certificate. They must be specifically employed to transport dangerous goods. If for example a driver has the appropriate PDP and a hazardous goods certificate, but was appointed to transport furniture he/she will not qualify as a dangerous goods driver.

Q: Has the NBCRFI jurisdiction over security guards employed in the Road Freight Sector?
A: The answer is yes on condition that a security guard is employed by an employer engaged in the Road Freight Sector. The Main Collective Agreement defines “security guard” as an employee, other than a security officer, who is engaged in one or more of the following duties: Guarding, protecting or patrolling premises, buildings, structures or other fixed or movable property, whether or not he handles or controls dogs in performance of any or all of the said duties.
The Main Collective Agreement thus provides for security guards in the Road Freight Sector and minimum wages are prescribed for these categories of employees under Grade 1 employees in the wage table.

Q: A new levy to be paid to dangerous goods drivers by their employers has been introduced. Please explain.
A: The levy payable to dangerous goods drivers will only be applicable if the employee is a dangerous goods driver, as defined, and if an employer’s client restricts the driver’s maximum daily hours from 15 hours to 12 hours or less per shift. If the maximum daily hours are not restricted by the employer’s client, then the driver will not qualify for this levy. Should a driver however qualifies he should be paid as follows per shift:

Restricted to 12 hours or less = R70.00
Restricted to 13 hours or less = R45.00
Restricted to 14 hours or less = R25.00

These amounts will increase as per the across the board increase as at 1 March 2010.

Q: New wages have been negotiated. For how long will it be applicable?
A: Wages have been negotiated and published in the Government Gazette for a period of 2 years. As from the date of publication all employees for whom minimum wages are prescribed, must receive an increase of at least 11%. New employees may not receive less than the minimum prescribed wages. The first wage table in the Main Agreement will be applicable up to 28 February 2010.

As from the 1st of March 2010 all employees, for whom minimum wages are prescribed, must receive a 9,5% increase. The wages of employees engaged in the CIT sector will however be determined by using an agreed formula.

It should also be borne in mind that special wage increases have been negotiated for vehicle guards (CIT sector) which will come into effect on 1 January 2010 and in respect of grade 4 and grade 5 employees which will become effective on 31 December 2010 and 28 February 2011 effectively. Employees in these grades (4+5) will receive across the board increases of 3% on both occasions.

Q: New sub clauses for overtime work have been introduced for CIT sector employees. Why?
A: The reason why these sub clauses were brought in are to ensure that overtime will be calculated on weekly overtime worked and that overtime worked may only be set off against shortage of ordinary hours of work by written consent of the employee. This however does not apply in instances of unauthorized absence.

Q: Has the subsistence allowance been increased?
A: Yes it has increased by 11% and will further increase by another 9,5% on 1 March 2010. The name of the clause has also been changed to Subsistence and Cross Border Allowance.

Q: Has the night work allowance also been increased?
A: Yes the allowance increased by 11% and will increase by a further 9,5% on 1 March 2010. Presently it is R5.55 for the first hour of work and R1.11 for every completed hour after 19h00.

Q: How will the contributions to the Sick and Absence Fund be calculated?
A: Contributions will be calculated at 20% of an employee’s weekly wage per completed 21 shifts. This means that once an employee has completed 21 shifts he/she will be credited with 1 day’s sick leave.

Q: Why has clause 23, Sick Leave, been repeated?
A: Clause 23 was applicable in the “B” area and provided that an employee should be credited with at least 30 days sick leave over a period of 3 years. These credit days were in the past used to build sick leave credits in the Sick and Absence Fund. Now that the contribution would be 20% per completed 21 shifts throughout the Industry, employees in the “B” area will not be entitled to the 30 days in a 3 year cycle anymore. Existing employees will have the credit days in the Fund which they have accumulated together with 1 day per completed 21 shifts as from the date of publication of this Agreement. New employees in the Industry will not be credited with the 30 sick leave days in a 3-year circle, but will only be credited with one day’s sick leave if an employee has completed 21 shifts.

Q: The maternity leave clause has also been amended. What are the major amendments?
A: The major amendments, especially for employers in the former “A” area are that an employee will qualify for payment of at least 33% of her normal basic wage paid to her on a weekly basis and the period to qualify for payment has been reduced from the previous 2 years unbroken service to 6 months unbroken service.

Q: A new clause 59 has been included regarding days off in the CIT sector. Please explain.
A: An employee employed in the CIT sector and for whom a minimum wage is prescribed will be entitled to one day off if such an employee had full attendance during a specific month. The day off will be granted during the following month and the employee will receive his normal wages for that day. The day off referred to shall not be deducted from for example his annual leave days due to him. If an employee was on sick leave or on any other type of leave during a specific month, such employee will not qualify for a day off the following month.

If it is not possible to grant the day off during a specific month, the employer may either grant the employee an additional day off during the following month or pay the employee for that day at the ordinary hourly rate.

PROVIDENT FUND COLLECTIVE AGREEMENT

Q: Has the provident contributions been increased?
A: Yes the contributions were increased. As from the date of publication of the Agreement an employee will on a weekly basis contribute 10% of his basic weekly wage towards the Fund and the employer will also contribute the same percentage, namely 10%. It should however be borne in mind that the employer must still deduct 0,5 percent of an employee’s Wellness Fund contribution and add that amount to the provident fund contributions. This will have the effect that a percentage of 20,5% calculated on the weekly basic wage would be paid over to the provident fund i.e. 10% by employer, 10.5% by the employee (consisting of 10% provident fund and 0,5% Wellness Fund).

AGENCY SHOP COLLECTIVE AGREEMENT

Q:    How much is the levy per employee?
A:  1% of the employee’s basic weekly wage

Q:  From when is this levy in effect?
A:  From January 2009

Q:  If an employee belongs to a non party trade union must he still pay agency shop?
A:  Yes they must

Q:  If an employee works only one day during a specific day must he still pay agency shop?
A:  Yes they must

Q:  Who must pay agency shop?
A:  All employers in our Industry who are not members of an employers party to this Council

Q:  If a company got more than one levy number at the Council do they need to pay per levy number?
A:  Yes, company need to pay levies per establishment (levy number)

Q:   Is it compulsory for owner drivers to pay agency shop?
A:   No, owner drivers are excluded from our main agreement

GOVERNMENT GAZETTE NUMBER 30041

Question 1: What is the correct deduction for the Wellness Fund?

Answer: - Refer to clause 57 (3)(a)
1% contribution from employer on employee’s basic weekly wage, and 0,5% contribution from the employee deducted from his basic weekly wage, the amount of 1,5% payable to Council per employee on the monthly returns.

Question 2: Why and what is the purpose of the Wellness fund and is it compulsory?

Answer: - Refer to clause 57 (1)(a) & (b)
a)       It is compulsory as promulgated and approved by the Minister of Labour as from 09.07.2007.
b)       It benefits the wellness of the employees in the road freight industry regarding :

i)   HIV education and behavioral change intentions
ii)  Confidential voluntary counseling and testing
iii)  Treatment and support available

Question 3: Confirm the new contribution for the Provident Fund?

Answer:
As from 09.07.2007 the Provident Fund contributions increased to:-
Employer    9%
Employee    9.5%

Question 4: Sick and absence fund on the “B” area, how does the employer calculate the contribution for Council and can the employer claim monies back from the fund if an employee A.W.O.L?

Answer: - Refer to clause 22(1) to (7)
a) Calculate basic wage x 10% per 21 shifts payable to Council, bear in mind the 10% equals a half (½) day per 21 shifts until February 2008. This represents 6 days per year and half a day per 21 shifts. Let this contributions stay in the employees account until one (1) full day or more accumulated.

The most practical way is to remain on the old system as per basic conditions of employment that is to deduct six (6) day from the employees sick leave cycle of 30 days in 36 month cycle and work on the balance what ever to his/her credit.

b No sick fund claims if an employee A.W.O.L. The now work no pay basis is applicable.

Question 5: Leave pay fund, the correct payments and when an employee goes on leave within the next month or two, how does the employer pay him/her?

Answer: - Refer to clause 19 (1) to (6)
Contributions from the employer on behalf of the employees equal the basic weekly wage, x 25% payable on 21 shifts to Council 25% represent 15 days per year.

Question 6:
Payments to employees in the near future?

Answer: - Refer to clause 19(1) to (6)
Employer to claim what ever contributions regarding leave fund is paid over to Council and then pay the employee that’s due for his leave on a pro-rata basis the balance to his leave payment. Employers can either pay employees full when on leave and claim the leave money back from Council with proof provided that the employee was paid in full for the leave period.

Question 7:
Back pay on increases, is this to all employees in the Industry or not?

Answer: - Refer to clause 7 (1) to (3)
Back pay for six weeks prior to the promulgation of the agreement, only applicable to R.F.E.A. members who have signed the agreements.

All other employees will receive the 9% across the board increase if they were employed in the industry prior to the 9^th July 2007. They don’t qualify for a back payment.

Question 8:
From what date should the increases be paid over to Council for the monthly returns?

Answer:
The July returns have to be completed and submitted to Council based on the new increases.

Question 9:
Night work payments are this correct: as per the amendments of 09.07.2007.

Answer: - Refer to clause 17
Yes correct payable R5-00 for the first hour of work and there after R1-00 for each hour completed until 06h00 provided that transport from work to home is available. This is for work during 18h00 and 06h00.

Question 10:
Why are there no new tables to calculate the Holiday pay bonus fund to employees?

Answer: - Refer to clause 11
Payment for holiday pay bonus is now based on actual wages:
Formula : 36.08 x wages, per 21 shift cycle.

Question 11:
General deductions on employees weekly wages for house loans, debt and garnishee orders etc. How will the deduction be made when the employees claim their leave pay form Council?

Answer: - Refer to clause 19
The employers have to implement their own system to get these deductions done and to pay over to who ever is involved.

Or

Employers can pay the employee during his leave absence on the normal way and claim the leave pay from Council if proof of the payment to the employee can be submitted for transfer of the monies back to the Employer.\

Question 12: How will short time be defined not only on the furniture sector, but also in the other sector?

Answer: - Refer to clause 13
Employers in other sectors have to apply for exemption as in the “A” area. The short time as define now is only applicable to the furniture sector.

• Amended Main Agreement 2009
  
  
  
• Agency Shop Collective Agreement
  
  
  
• Amendments on the Agreement 2007