NATIONAL BARGAINING COUNCIL<= /p>

= FOR THE

CLOTHING MANUFACTURING INDUSTRY

Cape Chamber

(Eastern Cape Sub-Chamber)

Tel: = 041 487 1874

Fax: 041 487 1761

www.nbc.org.za

CHAMBER HOUSE, 22 GRAHAMSTOWN ROAD, NORTH END, PORT ELIZABETH 6001

P O Box<= span lang=3DEN-ZA style=3D'font-size:8.0pt;mso-bidi-font-size:10.0pt;mso-ansi= -language: EN-ZA'> 3220

North End

6056

1 September 2007=

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TO: ALL EMPLOYERS SUBJECT TO PART A OF THE COUNCIL’S NATIONAL MAIN COLLECTI= VE AGREEMENT (CLOTHING, GARMENT KNITTING, HOSIERY AND MILLINERY SECTORS FOR = THE "METRO" AREAS OF THE EASTERN CAPE SUB-CHAMBER OF THE NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY)

Dear Sir/Madam

INFORMATION CIRCULAR TO THE INDUSTRY FOLLOWING T= HE 2007 ROUND OF NEGOTIATIONS<= o:p>

METRO AREAS ONLY

(i.e. those establishments situated within the Magisterial Districts of East London, Hankey (portion), Mdantsane (portion), Port Elizabeth and Uitenhage (portion= )

Further to the CouncilR= 17;s Circular NBC/1/2007 of 11 May 2007<= /span>, this circular summarises the outcome of the Industry negotiations. The Parties to the National Bargaining Council have concluded a Collective Agreement in term= s of which the total labour cost increase for all “Metro” regions amounts to 5.5% with effect from 1 September 2007.

The Agreement will be subm= itted to the Minister of Labour with a request that it be extended to employers= and employees in the Industry, other than those who are party to the Agreemen= t, i.e. all Non-Parties.

Details of the negotiated settlement in respect of the Eastern Cape Metro Region (Part A of the Council’s National Main Collective Agreement) are as follows:-=

1.= &nb= sp; New wage= rates and across-the-board increases for the period commencing 1 September 07 <= /span>

= ; The new wage rates from 1 September 2007, which reflect an across-the-board increase of 5.5% on all grad= es, are enclosed.

&nb= sp;

&nbs= p; Garment Knitting establishments will receive both a “clothing” and a “garment knitting” wage schedule.

2. &n= bsp; Contributions

2.1 = Provident Fund<= o:p>

The Provident Fund contribution rate for employers and employees remain unaltered, as follows: <= /p>

Qualified Machinists’ earnings and above:<= span style=3D'mso-spacerun:yes'> Employer: 6,79% Employee:= 3,60%

Earnings below Qualified Machinists’ rate: Employer:= 6,99% Employee:= 3,80%

2.2 Medica= l Aid (Prime Cure)

The Medical Aid contributi= on rates for employers increases as set out below and that of employees remain unaltered, as follows: &= nbsp;

&nbs= p; Employee &nb= sp; : = ; R22,89

&n= bsp; = ; Employer = ; : = ; from R11.40 to R12.03

<= b>2.3 Bargaining C= ouncil Levy

The Barg= aining Council levy remains unaltered at R1,30 per week for employees and= R1,37 for employers.

<= b>2.4 SACTWU HIV/A= IDS Contribution

This increases from 30 cents to 32 cents per employee per week, payable by the employer only.

<= b>2.5 SACTWU Bursa= ry Fund

Contributions increase from 20 cents to 21 cents per employee per week, payable by the employer only.

<= b>2.6 Supplementary Benefits Fund

Employer contributions increase from 60 cents to 63 cents per employ= ee per week.

3. &n= bsp; Trade Union Deductions

<= span lang=3DEN-ZA style=3D'mso-ansi-language:EN-ZA;font-weight:normal;text-dec= oration: none;text-underline:none'>The Trade Union subscription rate for its membe= rs remains unchanged at 1% of the member’s basic wage rate with a new = minimum of R5.00 per week and a = new maximum of R9.20 per week, effec= tive 1 September 2006. The = contribution rate towards its funeral scheme remains at per week to R1,20 per week, bringing the total= new minimum to R6.20 per w= eek (i.e. the R5.00 plus the R1,20) and the total new maximum to R10.40 per week (i.e. the R9.20 plus the R1,20). The Trade Union has sent out a separate notice in this regard.

4.&n= bsp; Schedule of Deductions

<= span lang=3DEN-ZA style=3D'font-family:Arial;color:black;mso-ansi-language:EN-= ZA'> = ; A revised schedule of weekly deductions and contributions is enclosed.=

&nbs= p;

5.= Further issues on which agreement was reached

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-fareast-font-family:Arial;mso-bidi-font-weight:bold'>5.1.Ex= tension of current gazetted agreements to non-Parties

The Minister will be requested to extend the current gazetted agreements to non-parties for a further period from 1 September 2007 onwards, until the Parti= es to the Main Agreement agree otherwise.

5.2.Cl= osed Shop

&nbs= p;

The Closed Shop Agreement shall be amended by removing the phrase “or employers’ organisation” from sub-clause C thereof.

5.3.HI= V/AIDS

The Code of Good Practice on key Aspects of HIV/AIDS and Employment as set out in the Employment Equity Act No 55 of = 1998 (as amended from time to time) shall be policy in the industry. A sub-committee shall be established to word it in a manner that this polic= y is industry specific.

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5.4.Pr= oductivity

  &n= bsp;

The following additional clause is agreed:

5.4.1   The parties commit themselves to prioritise the work of the Nupen report.

5.4.2    Subject to clauses 8.3 and 8.5 below, the parties specifically declare their intention and good faith to find practical means whereby future wage increases can be linked to plant-level productivity improvement schemes f= or both metro and non-metro areas.

5.4.3    When the productivity-related work programme as set out in the Nupen report is finalised, the ratio between reward for productivity and the ATB annual wage increases for metr= o and non-metro areas shall be negotiated between the parties at national level= , as would be the extent to which parties could determine productivity schemes= and reward systems at enterprise level.

5.4.4    It is expressly agreed that the objective is to implement such arrangements within the timeframes as recommended in the Nupen report and the parties = set themselves the objective to implement such arrangements, where agreed bet= ween the parties, with effect fr= om the 2008 substantive agreement.=

5.4.5    Nothing in this clause shall serve to over-ride any of the recommendations which = are contained in the Nupen report.

5.5    NBC Levy

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>  &n= bsp;

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>  &n= bsp;       The NBC levy Contribution by employees shall be increased to the same rand am= ount as that applicable in other chambers of the NBC.

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>

The parties shall further discuss whether or n= ot to change the NBC levy contribution from a flat amount to a percentage – based one and, if agreed, what percentage would be applicable.

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>

5.6 Payment of Wages

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>

All payments of wages in the non-metro areas s= hall be no more than bi-weekly, unless otherwise agreed in writing between the parties at plant level.

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;font-fami= ly:Arial; mso-bidi-font-weight:bold'>

5.7  = ; Contract Employees

  &n= bsp;            = ;

5.7.1 &nb= sp;    The parties strongly condemn the abuse of contract work.

5.7.2 &nb= sp;    The NBC shall conduct a survey on the extent and type of contract work in the clothing industry.

5.8  = ; Shop Stewards Rights and Facilities

Shop stewards’ paid time-off for trade activities shall be increased to 10 paid days per annum, in all areas whe= re it is currently less than 10 days per annum.    All other existing provisions on shop stewards rights and facilities shall remain in force a= nd effect.

&nbs= p;

6. &n= bsp; Non-Metro Areas (for the purposes= of this circular, means all areas of the Eastern Cape Province other than the magisterial districts listed in the bolded heading of this circular)=

A separate circular is being distributed to all establishments in the non-metro areas, nationally.

7. &n= bsp; Council’s Website (www.nbc.org.za)

= ; The Council’s website on the Internet is regu= larly being updated. Those who ha= ve access to the Internet can view and download the Main & Provident Fund Collective Agreements of the various “metro” and non-metro areas. These are in the for= m of consolidated agreements i.e. the original published agreements, updated f= or subsequent published amendments. This notice will also be a= dded to the Council’s website.

Any enquiries from employers who are members of the Eastern Province Clothing Manufacturers’ Association (EPCMA) should= be directed to their Association. In the case of non-party establishments, enquiries should be directed to the Council’s Regional Secretary on (041) 487 1874.

Yours faithfully=

T C HEUGH

REGIONAL SECRETARY

SDN//Annual Increase 2007 Circular-ECape<= /b>

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