MIBCO wage schedules and status

Our newsflash of same title dated 19 August 2020 refers.


We have not received any new or further feedback from the Department of Employment and Labour (DoEL) as regards the date on which it proposes to publish the new MIBCO Main Agreement, inclusive of the wage schedules for 2020/2021 and 2021/2022, and extend it to all employers and employees in the Industry.


In the meantime however, the National Union of Metalworkers of South Africa (NUMSA), has corresponded with the RMI requesting to meet with ourselves to agree on interim arrangements where the implementation of the new wage schedules will be made compulsory for RMI member businesses only. This is until such time as the new agreement is published. On 14 October 2020 we responded to NUMSA with three possible dates for the purpose of conducting such a meeting. We have to date not received any response from NUMSA.


The purpose of such a meeting is the RMI’s intention to inform NUMSA that it cannot agree to an arrangement where only one portion of the Industry, being businesses that are RMI members, are compelled to implement wage increases. This would be burdensome and unfair to those businesses who would have to compete commercially with non-members that are not compelled to implement these wage increases. The RMI also intends informing NUMSA that it is incapable of declaring / propagating disputes, and perhaps even engage in a strike on this issue, as it is specifically provided for as a term of the wage settlement agreement entered into between the RMI, NUMSA and the Fuel Retailers’ Association. We are however willing to consider any other measures that NUMSA may wish to propose to achieve an expidited publication and extension of the new Main Agreement.


It has also come to our attention that the correspondence NUMSA directed at the RMI, referred to in paragraph 2 above, has also been sent to certain employers in the Industry – notably, RMI members. We would urge our Members who receive this correspondence, not to engage with NUMSA at business level, but to refer NUMSA to ourselves as we are the collective bargaining agent acting on behalf of all our Members in these matters. We will attend to the matter as and when we are able to engage with NUMSA’s leadership, and provide continued feedback to our Members, as and when developments occur.


We reassure you that no effort will be spared in ensuring that the rights and interests of our Members’ businesses are protected in the process. We are acutely aware of the serious and sustained pressure that businesses in the retail motor industry are experiencing at present due to the prevailing national state of disaster and lockdown measures being in place. We will not permit any arrangement that will aggravate the present situation.

If Members have any questions in this regard, they should contact their nearest RMI Regional Office and consult with one of our highly trained IR Specialists.