CIRCULAR NO. IC/10/97

NATIONAL BARGAINING COUNCIL

FOR THE<= /span>

CLOTHING MANUFACTURING INDUSTRY

Cape Chamber

(Wester= n Cape Sub-Chamber)

Tel: (02= 1) 460 4000 Fax: (021) 447= 0628 www.nbc.org.za	7th FLOOR, INDUSTRIA HOUSE, = 350 VICTORIA ROAD, SALT RIVER, 7925	P O BOX 1142 WOODSTOCK 7915
CIRCULAR NO. WCC/03/2007
Telephone Enquiries : Labour Affairs Department &nb= sp; = &nb= sp; = &nb= sp; = &nb= sp; &nbs= p; 16 August 2007 TO : = ALL EMPLOYERS SUBJECT TO PARTS F & H OF THE COUNCIL’S NATIONAL MAIN= COLLECTIVE AGREEMENT (CLOTHING, GARMENT KNITTING, HOSIERY & MILLINERY SECTORS FOR THE “METRO” AREAS WITHIN THE WESTERN CAPE SUB-CHAMBER OF THE NATIONAL BARGAINING COUNCIL FOR THE CLOTHING MANUFACTURING INDUSTRY) &nb= sp; Dear Sir/Madam INFORMATION CIRCULAR TO THE INDUSTRY FOLLOWING THE 2007 ROUND OF NEGOTIATIONS<= /o:p> METRO AREAS ONLY (i.e. those establishments situated within the Magisterial Districts of Bellvil= le, Goodwood, Malmesbury, Mitchell’s Plain (portion), Moorreesburg (portion), Simonstown, Somerset West, Strand, The Cape and Wynberg= ) The Parties to the National Bargaining 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,= made up of a wage increase of 5.5% less 0.13% towards increasing the annual bonus provision from 1.87% to 2%. This circular summarises the outcome of the Industry negotiations. The Agreement will be submitted to the Minister of La= bour 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. Details of the negotiated settlement in respect of the Western Ca= pe Metro Region (Parts F & H of the Council’s National Main Collec= tive Agreement, excluding the Magisterial Districts of George and Worcester) are set out below. You have bee informed that the Chamber will be conducting a Wage Clerk’s course on implementing these increases during the first wee= k of September and you will be notified of the date on which your wage clerk should attend. 1. &nbs= p; New wage rates and across-the-board increases for the period commencing 1 September <= /u>2007 = ; The new wage rates schedule from 1 September 2007, which reflects an across-the-board increase of 5.37% on all grades, rounded to the nearest 50 cents= , is enclosed. = ; The “2001 Allowance” negotiated in 2001 for only the Clothing, Garment Knitting and Hosiery Sectors, must still be paid to employees and= be reflected separately on each employee’s wage slip. Refer Bargaining Council Circular No BC/13/2001 dated 24 August 20= 01 for details of this allowance. = ; Employees who are not members of the Industry’s Provident Fund do not receive the “2001 Allowance”, but receive an additional 20 cents per week instead of = the “2001 Allowance”. Refer the wage schedule. = ; Neither the “2001 Allowance” nor the 20c is taken into consideration = when calculating hourly rates, shift allowance, sick pay, annual leave pay, an= nual bonus, Trade Union subscriptions, etc. = ; The “2001 Allowance” provision is not applicable to the Millinery Sector. 2. &nbs= p; Annual Bonus The Annual Bonus payable to employees has been increased from 1.87% to 2% of annual basic prescribed wages (excluding overtime earnings and production bonuses). The 2007 annual b= onus is to be calculated as follows: &nbs= p; (a) &nbs= p; &= nbsp; 1.87% on the total wages paid from= 1 January 2007 to 31 August 2007 (b) &nbs= p; &= nbsp; 2% on the total wages paid from 1 September 2007 to 31 December 2007 From 2008 onwards the annual bonus of 2% is to be calculated on the total wages ear= ned during the year.
3. &n= bsp; New Ceiling Wage Rate The scope= of this Regional Council’s Agreements will be adjusted to raise the ceiling wage rate as follows: &nbs= p;
&nbs= p;	Period commencing 1 September 2007	&nbs= p;
	ANNUAL	MONTHLY	WEEKLY
	R58 448.00	R4 870.50	R1 124.00

4. &n= bsp; Contributions 4.1 = ; Health Care Fund<= /b> o &nbs= p; &= nbsp; &nbs= p; &= nbsp; The Employee contribution ra= tes to the Health Care Fund increase by R3,00 per week to R18,40 and R23,10 for a Group 1 contributor and to R20,40 a= nd R27,10 p.w. for a Group 2 contributor, respectively. = ; o &nbs= p; &= nbsp; &nbs= p; &= nbsp; The Employer contribution ra= tes to the Health Care Fund increase by 5.37% to R5.43 per empl= oyee per week for Group 1 and R6.49 for Group 2. 4.2 Provident Fund *Employer Contribution Rate:* The Employer’s contribution rate to the Provident Fund remains unalt= ered at 6,25%, which rate is based on employees’ actual basic wage (<= u>exclusive of the “2001 Allowance”). *Employee Contribution Rate:* Employees’ contribution rate to the Provident Fund also remains unaltered at 6,03%, which rate is based on employees’ act= ual basic wage (exclusive of the “2001 Allowance”). Please no= te that in terms of clause 1(3) of the Provident Fund Agreement, contributio= ns to the Fund must continue in respect of existing contributors as a= t 31 August 2007 who will earn in excess of the ra= tes reflected in paragraph 2 above. 4.3 = ; Bargaining Council Levy<= /p> The Bargaining Council Levy for employers increases by 5 cents per week from R1.25 to R1.30 per employee per week. Employee contributions = increase by 12 cents per week from R1.18 to R1.30 per employee per week.<= /o:p> = ; &n= bsp; 4.4 = ; Across the board Increases in Employer Contributions In addition to Employer Health Care Fund contributions recorded in 4.1 above, the following levies and contributions payable by the Employer have been increased by the 5.37% total labour cost increase:
	Category	Old Rate	New Rate (p.w. per employee)<= /o:p>
	Industry Protection Fund	13c	14c
	SACTWU Capacity Building Fund	25c	26c
	SACTWU HIV/AIDS Project	30c	32c
	SACTWU Bursary Fund	20c	21c

5. = ; Consequential changes for the period commencing 1 September 2007

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;color:bla= ck'> = ; Wage and salary departments are reminded of the following consequential changes flowing from higher wage rates as well as other changes :

<= span style=3D'mso-list:Ignore'>· The maximum deduction= for Provident Fund from the earnings of contributors will be = R67.78 per week or R293.71 per month. The maximum Provident= Fund contribution rate payable by employers will be = R70.25 per week or R304.42 <= /b>per month.

<= span style=3D'mso-list:Ignore'>· The Trade Union subscription rate for its memb= ers remains unchanged at 1% of the member’s basic wage rate with a n= ew minimum of R5.00 per week and a new m= aximum of R9.20 per week, effective 1 September 2007, together with funeral scheme contribution of R= 1,20 per week, bringing the total new minimum to R6.20 per week (i.e. the R5.00 plus the R1,20) and the total new maximum to R10.40per week (i.e. the R9.20 plus the R1,20).

<= span style=3D'mso-list:Ignore'>· The cut-off point for the lower and higher Health Care Fund contributions to R597,00 i.e. R3,00 above the Qualified Grade B Wage Rate.

6.= Further issues on which agreement was reached

<= i>6.1. &nbs= p; Extension 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 Parties to the Main Agreement agree otherwise.

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;mso-farea= st-font-family: Arial;mso-bidi-font-family:Arial'>6.2. &nbs= p; Closed Shop

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

6.3. HIV/AIDS

The Code of Good Practice on key Aspects of HIV/AIDS and Employment as set ou= t in the Employment Equity Act No 55 of 1998 (as amended from time to time) sh= all be policy in the industry. A sub-committee shall be established to word i= t in a manner that this policy is industry specific.<= /p>

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;mso-farea= st-font-family: Arial;mso-bidi-font-family:Arial'>6.4. &nbs= p; Productivity

The following additional clause is agreed:

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

6.4.2 = ; Subject to clauses 6.4.3 and 6.4.5 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 for both metro and non-metro areas.

6.4.3 = ; 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 metro and non-metro areas shall be negotiated between the parties at national level, as would be the extent to which parties could determine productivi= ty schemes and reward systems at enterprise level.

6.4.4 = ; 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.=

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

6.5 NBC Levy

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

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;mso-bidi-= font-family: Arial;mso-bidi-font-weight:bold'> &n= bsp; The NBC levy Contribution by employees shall be increased to the s= ame rand amount 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;mso-bidi-= font-family: Arial'>

The parties shall further discuss whether or not 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;mso-bidi-= font-family: Arial'>

6.6 Payment of Wa= ges

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

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

<= b>

6.7 Contract Empl= oyees

&n= bsp; = ;

6.7.1 The parti= es strongly condemn the abuse of contract work.

6.7.2 The NBC s= hall conduct a survey on the extent and type of contract work in the clothing industry.

6.8 Shop Ste= wards Rights and Facilities

Shop stewards’ paid time-off for trade a= ctivities shall be increased to 10 paid days per annum, in all areas where 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.

7. = ; Collective Bargaining and Dispute Resolution Levy

&nbs= p;

For employers who are not members of the Cape Clothing Association (CCA), the Collective Bargaining/ Dispute Resolution = Levy has been increased as follows:

Companies employing 40 workers or less:

= ; R93.48 (incl VAT at the current rate) per employee per month for monthly paid employees; or

= ; R21.59 (incl VAT at the current rate) per employee per week for weekly paid employees.

Companies employing more than 40 employees:

= ; R2.18 (incl VAT at the current rate) per employee per month or monthly paid employees; or

= ; R0.50 (incl VAT at the current rate) per employee per week for weekly paid employees.

&nbs= p;

8. = ; Schedule of Deductions

<= span lang=3DEN-GB style=3D'font-size:9.0pt;mso-bidi-font-size:10.0pt;color:bla= ck'> = ; A revised schedule of weekly deductions and contributions is enclosed.=

&nbs= p;

9.= &nb= sp; Non-Metro Areas (for the purposes= of this circular, means all areas of the Western Cape Province other than the ten Magisterial Districts listed in the bolded heading of this circular)<= o:p>

&nbs= p;

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

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

= ; The Council’s website on the Internet is regularly being updated. Those who have access to the Int= ernet can view and download the Main & Provident Fund 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 who are members of the Cape Clothing Association should be directed to their Association. In the case of non-party establishments, enquiries should be directed to this Chamber’s Labo= ur Affairs Department on tel no (021) 460-4000.

Yours faithfully

A C DAVID= S

Regional Secretary

ACD/hc/Circulars 2007_Annual Increase Circular WCC-Main<= o:p>

Cape Chamber

CIRCULAR NO. WCC/03/2007