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<= o:p>

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 D OF THE COUNCIL’S NATIONAL MAIN COLLECTIVE AGREEME= NT = (NORTHERN REGION = CLOTHING & MILLINERY SECTORS WITHIN 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

Province of the = Transvaal as it existed prior to the coming<= /o:p>

into operation o= f the Constitution of the Rep= ublic of South Africa

The Parties to the National Barga= ining Council have concluded a Collective Agreement in terms 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. The parties further agreed that the employers contribution to the Sick Pay Fu= nd will be increased by an additional R1,50 per worker per week (i.e. 5.5% p= lus R1,50).

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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 (Clothing) (Part D 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 <= /span>

<= 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 14 cents from R2,50 to R2,64 per week, whilst the employer contribution rate increases = by R1,64 cents from R2,63 to R4,27 per week. These now are:=

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&n= bsp; = ; &n= bsp; Employee = ; : = ; R2,64

&= nbsp; &nbs= p; &= nbsp; Employer = ; : = ; R4,27

2.2 Medical Benefit Society

The employee contribution rate to the Medical Benefit Society increases by 42 cents from R7,70 to R8,12 per week, whilst the employer contribution rate increases by 44 cents from R7,98 to R8,42 = per week. These now are:

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&nb= sp; = &nb= sp; = Employee : = ; R8,12

&= nbsp; &nbs= p; &= nbsp; Employer = ; : = ; R8,42

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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 of the old = Province of the Transvaal not covered by Parts D (Clothing) and E (Knitting) of the Council’s National Main Collective Agreement for the Northern Regio= n)

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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.<= span style=3D'mso-tab-count:1'> = ; 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 ar= eas. 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’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