CIRCULAR NO. IC/10/97

NATIONAL BARGAINING COUNCIL

FOR THE

CLOTHING MANUFACTURING INDUSTRY

Northern Chamber

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Tel: 011 402 2737

Fax: 011 402 7375

www.nbc.org.z= a

1ST FLOOR, GARMENT CENTRE, 1= 48 KERK STREET, JOHANNESBURG 2001

P O Box 51= 01

Johannesburg

2000=

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CIRCULAR NO. NBC/03/2007

Tel= ephone Enquiries : Labour Affairs Department

1 September 2007

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<= b>TO : ALL EMPL= OYERS SUBJECT TO PART B OF THE COUNCIL’S NATIONAL MAIN COLLECTIVE AGREEME= NT (FREE STATE &= ; NORTHERN CAPE REGION W= ITHIN THE “METRO” AREAS ONLY OF THE NORTHERN CHAMBER OF THE NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY)

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Dear S= ir/Madam

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INFORMATION CIRCULAR TO THE IND= USTRY FOLLOWING THE 2007 ROUND OF NEGOTIATIONS

METRO AREAS ONLY=

(i.e. those Clot= hing establishments situated within the Magisterial Districts

of Bloemfontein, Frankfort, Kimberley, Kroonstad, Parys and Vrede= fort)

The Parti= es to the National Bargaining Council, have concluded a Collective Agreement in terms of whi= ch the total labour cost increase for Bloemfontein, Kimberley and Kroonstad regions amounts to 5,5% and in the Frankfurt, Parys and Vredefort regions the Rand amount applicable in the magisterial districts of Bloemfontein, Kimberley, and Kroonstad with effect from 1 September 2007. The increase in total labour cost also has other consequential contribution increases as reflec= ted hereunder.

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The Agree= ment will be submitted 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 Agreement, i.e. all Non-Parties.

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Details o= f the negotiated settlement in respect of the Free State/Northern Cape Region (= Part B of the Council’s National Main Collective Agreement) are as follo= ws:-

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

<= span lang=3DEN-GB style=3D'font-size:10.0pt'>&= nbsp; The new wage rates from 1 September 2006 which reflect the increases as menti= oned above, rounded to the nearest 50 cents, are enclosed.

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Please note the following:

(i) &n= bsp; Employees who earn in excess of the prescribed wage should receive the increase equivalent to the increase of an employee in the same category. (See attached schedule).

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(ii)Learners in employment for 16 weeks or more in any half-year are deemed to be in employment for the full half-year except in the case of the first half-ye= ar where more than 13 weeks’ experience is deemed to be employment for= the full half-year.

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2. = ; Contributions

2.1 Medical Benefit Society

&= nbsp; The employee contribution rate to the Medical Benefit Society increases by 26 cents from R4,80 to R5,06 per week, whilst the employer contribution rate increases by 38 cents from R6,83 to R7,21 per week. These now are:=

&nb= sp; = &nb= sp; = Employee : = ; R5,06

&= nbsp; &nbs= p; &= nbsp; Employer = ; : = ; R7,21

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2.2 Provident Fund

The employee and employer contribution rates t= o the Provident Fund remain unaltered as:

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&nb= sp; = &nb= sp; = Employee : = ; 5,75%

&= nbsp; &nbs= p; &= nbsp; Employer = ; : = ; 6,5%

3. = Trade Union Deductions

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T= he Trade Union subscription rate for its members 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, effective 1 September 2007 The contribution rate towards its funeral scheme remains R1,20 per week bringing the total n= ew minimum to R6,20 per week (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. = ; Schedule of Deductions

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A revised schedule of weekly deductions and contributions accompanies this circular.

5 &= nbsp; Non-Metro Areas (for the purposes of this circular, means all areas in the Prov= ince of the Free State other than the Magisterial Districts listed in the bold= ed heading of this circular. Non-Metro areas for the Northern Chamber of the Council also inclu= de the Magisterial Districts of Barkly West, Gordonia, Hartswater, Hay, Herbert, Hopetown, Kenhardt, Kuruman, Phillipstown, Postmasburg, Prieska and Warrenton, i.e. those districts falling within the northern half of the Northern C= ape Province.)

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

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6 = ; Council’s Website (www.nbc.org.za)

&= nbsp; 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 Fun= d Collective Agreements of the various “metro” and non-metro areas. These are in the form of consoli= dated agreements i.e. the original published agreements, updated for subsequent= published amendments. This noti= ce will also be added to the Council’s website.

Any enquiries from employers wh= o are members of any of the Employers' Associations should be directed to their Association. In the case of non-party establishments, enquiries should be directed to this Chamber= 217;s Labour Affairs Department on tel no (011) 402-2737.

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Yours = faithfully

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K P= EDRICK

= REGIONAL SECRETARY

WAR/wp/Annual Increase 2006 Circular-FSNC<= /o:p>