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.za

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 E OF THE COUNCIL’S NATIONAL MAIN COLLECTIVE AGREEME= NT (NORTHERN REGION (KNITTING) WI= THIN 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 Garm= ent Knitting establishments situated within the Municipal Area of Pretoria

and the Magister= ial Districts of Alberton, Benoni, Germiston, Johannesburg and Roodepoort)

The Parti= es 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 increase in total labour cost also has other consequential contribution increases as reflected 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 Northern Metro Region (Knitting) (Part E of the Council’s National Main Collective Agreement) are as follows:-

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

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<= span lang=3DEN-GB style=3D'font-size:10.0pt'>&= nbsp; The new wage rates from 1 September 2007, which reflect an across-the-board increase of 5.5% on all grades, rounded to the nearest 10 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

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2.1<= span lang=3DEN-GB style=3D'font-size:10.0pt'>&= nbsp; Sick Pay Fund

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&= nbsp; The employee contribution rate to the Sick Pay Fund increases by 12 cents from R2,21 to R2,33 per week, whilst the employer contribution rate increases = by 10 cents from R1,89 to R1,99. These now are:

&nb= sp; = &nb= sp; = Employee : = ; R2,33

&= nbsp; &nbs= p; &= nbsp; Employer = ; : = ; R1,99

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2.2 Medical Benefit Society

The employee contribution rate to the Medical Benefit Society increases by 34cents from R6,17 to R6,51 per week, whilst= the employer contribution rate increases by 38 cents from R6,83 to R7,21 per week. These now are:

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&nb= sp; = &nb= sp; = Employee : = ; R6,51

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

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2.3 Provident Fund

&= nbsp; The employer and employee contribution rates to the Provident Fund remain unaltered as:

&nb= sp; = &nb= sp; = Employee : = ; 5.75%

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

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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.

<= b>5= Non-= Metro Areas (for the purposes of this circular, means all areas in the Prov= inces of Gauteng, Limpopo, Mpumalanga and North West other than the six areas/districts listed in the bolded heading of this circular<= /span>

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

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 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 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’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 Draft Circular-Nort= hern Knitting<= /span>