NATIONAL
BARGAINING COUNCIL
FOR
THE
CLOTHING MANUFACTURING
INDUSTRY
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Tel: 031 301 2558/9 Fax: 031 301 6716 www.nbc.org.za |
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Dalbridge
4014 |
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Telephone Enquiries : Labour Affairs
Department 30 August 2006 TO
: ALL
PARTY & NON-PARTY EMPLOYERS SUBJECT TO PARTS C OF THE COUNCIL’S NATIONAL
MAIN COLLECTIVE AGREEMENT (CLOTHING, GARMENT KNITTING,
HOSIERY & MILLINERY SECTORS FOR THE “METRO” AREAS
ONLY OF THE KWAZULU-NATAL CHAMBER OF THE NATIONAL BARGAINING COUNCIL FOR THE
CLOTHING MANUFACTURING INDUSTRY) Dear Sir/Madam INFORMATION CIRCULAR TO THE
INDUSTRY FOLLOWING THE 2006 ROUND OF NEGOTIATIONS
METRO AREAS ONLY (i.e. those establishments situated within the
Magisterial Districts of Chatsworth, Further to the Council’s
Circular NBC/2/2006 of 20 March 2006, this circular summarises the outcome of
the Industry negotiations. The
Parties to the National Bargaining Council, after protracted deliberations
with third party facilitation, have concluded a Collective Agreement in terms
of which the total labour cost increase for all “Metro” regions amounts to 5%
with effect from 1 September 2006.
This is made up of a wage increase, a 20 cents per week increase in
the HIV/AIDS levy and a 30 cents per week increase in the Bargaining Council
levy. The Agreement 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.
Details of the negotiated
settlement in respect of the KwaZulu-Natal Metro 1.
Wage increases for the period commencing
1 September 2006 The
new wage rates from 1 September 2006, are attached. Garment
Knitting establishments will receive both a “clothing” and a “garment
knitting” wage schedule. |
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2. Contributions
2.1 Sick
Benefit Fund Employees’ and the Employers’ contributions to the Sick Benefit
remain unaltered at 1,5% and 1,75% respectively. 2.2 Provident Fund Employer Contribution Rate: The Employer’s contribution rate to the Provident Fund remains
unaltered at 7,0%. Employee Contribution Rate: The Employee only contribution rate to the Provident Fund
is increased from 6,0% to 6,5%. 2.3 Bargaining Council Levy The deduction per employee and the
equivalent amount payable by the Employer in respect of the Bargaining
Council Levy is increased from R1,00 to R1.30 per week. 2.4
HIV/AIDS The amount payable in respect of
employees earning up to R1 418,25 per week or R6 145,75 per month payable by
the Employer only, in respect of the SACTWU HIV/AIDS Project, is increased
from 10 cents to 30 cents per week. 2.5 The 20 cents per week payable by the
employer only in respect of the SACTWU Bursary Fund remains
unchanged. |
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3. Trade Union Subscriptions The
Trade Union subscription rate for its members remains unchanged at 1% of the
member’s basic wage rate with a new minimum of R4.60 per week and a new
maximum of R8.50 per week, effective 1 September 2006, but the contribution
rate towards its funeral scheme increases from R1.00 per week to R1.20 per
week bringing the total new minimum
to R5.80 per week (i.e. the R4.60
plus the R1.20) and the total new
maximum to R9.70 per week
(i.e. the R8.50 plus the R1.20). The
Trade Union has sent out a separate notice in this regard. |
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4. Schedule
of Deductions A
revised schedule of weekly deductions and contributions is enclosed. |
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5. Further
issues on which agreement was reached 5.1 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 2006 onwards, until the Parties to the Main Agreement agree
otherwise. 5.2 Process to Establish a New Approach to
Collective Bargaining 5.2.1 The parties recognise that it is
imperative for the parties to the Council to review their collective
bargaining practices and to develop an approach to collective bargaining that
is appropriate to the changed circumstances of, and the new pressures on, the
industry. 5.2.2 The parties commit themselves to develop
a new approach to collective bargaining in the industry and to negotiate a
national framework agreement. 5.2.3 The parties commit themselves to complete
the review and negotiations before the commencement of next annual round of
negotiations, namely by 31 March 2007. 5.2.4 The parties will appoint a working group
of employer and trade union representatives to develop the approach and a
national agreement. The working group will commence its work in October 2006
and will hold at least 4 meetings arranged by the Council before the end of
January 2007 and such further meetings as may be necessary in 2007 to
complete its task. 5.2.5 The parties will agree a facilitator by
30 September 2006. The facilitator will have the power to- 5.2.5.1 determine all process issues arising from
the review and negotiations contemplated in this paragraph, and 5.2.5.2 terminate the process if, in the opinion
of the facilitator, one or more of the parties is not participating in good
faith. 5.2.6 The proposals concerning a new approach
to collective bargaining and a national framework agreement made in the
course of the annual negotiations for this substantive agreement shall
constitute proposals for consideration under the process envisaged in this
paragraph. The parties may amend and supplement those proposals or submit new
proposals in accordance with any process determined by the facilitator. |
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6. Non-Metro Areas (for the purposes of this circular, means
all areas of KZN other than the six 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. |
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7. Council’s
Website (www.nbc.org.za) The
Council’s website on the Internet is regularly being updated. Those who have 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 form of consolidated agreements i.e. the original
published agreements, updated for subsequent published amendments. This notice will also be added to the
Council’s website. |
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Any enquiries should be
directed to the Labour Affairs Department on tel no (031) 301-2558. Yours
faithfully PAUL WILD war/wp/Circulars
2006_Annual Increase 2006
Circular -KZN |